Principles of Economics Short-answer Assignment (20% of final mark) 2000 words MAX

| December 7, 2018

Principles of Economics Short-answer Assignment (20% of final mark) 2000 words MAX 1. Use the AD-AS model to show how a recession can occur due to a fall in investor confidence. Assuming the government was interested in bringing the recession to an end, describe the fiscal and monetary policy responses most likely to serve that objective. 6 marks 2. If the actual unemployment rate fell below the ‘natural rate of unemployment’, explain [don’t just describe] the likely impact on …

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