Us economy which has a major economic impact be specific

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Q1. Four factors, both expected and unexpected, perpetuate the business cycle. Which of the following is NOT one of these factors?

Q2. Give an example of an event or incident that has taken place in the U.S. economy which has a major economic impact--be specific, e.g., 9/11 attack, natural disaster, rise or fall in oil prices due to OPEC policies, customer optimism or pessimism about an expected economic expansion or downturn, increase in government spending on healthcare, tightening of the legal and institutional environment and so forth. Illustrate what effect would this event have on AD or AS, other things being constant? Illustrate what would be the resulting effect on equilibrium price level? Elucidate. Illustrate what will be the effect of the different tools of fiscal policy to stabilize the economy? Give an example of a built-in stabilizer and Elucidate Explain how it would work to reduce this rise or fall in the level of AD.

Reference no: EM1317776

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