please make this a page length. do NOT draw any graphs. only write out the explanation. thank you. try to make it 1 page length.

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter15: Macroeconomic Policy, Economic Stability, And The Federal Debt
Section: Chapter Questions
Problem 6CQ
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please make this a page length. do NOT draw
any graphs. only write out the explanation.
thank you. try to make it 1 page length.
Question 2: Using the model of aggregate demand and supply explain the economic conditions with
particular emphasis on the financial sector that gave rise to the 2008 financial crisis. Then, carefully
explain within the AD & AS model how an expansionary monetary policy could move the economy back
to full employment as well as why this policy may not be effective. Follow this with an explanation as to
how fiscal policy could be used to move the economy out of an AD shock recession. (Use this question to
demonstrate your understanding of the financial sector and monetary and fiscal policy in the AD & AS
model when there is an AD shock.)
Transcribed Image Text:please make this a page length. do NOT draw any graphs. only write out the explanation. thank you. try to make it 1 page length. Question 2: Using the model of aggregate demand and supply explain the economic conditions with particular emphasis on the financial sector that gave rise to the 2008 financial crisis. Then, carefully explain within the AD & AS model how an expansionary monetary policy could move the economy back to full employment as well as why this policy may not be effective. Follow this with an explanation as to how fiscal policy could be used to move the economy out of an AD shock recession. (Use this question to demonstrate your understanding of the financial sector and monetary and fiscal policy in the AD & AS model when there is an AD shock.)
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