Please get ready to answer these by December 11, 2022. Draw relevant graphs, answer in complete detail with the help of the book and notes. Your answers must show the evidence of learning in this class.
Question 1
Compare the behavior of US macro-economy in 1980s and 1990s. (Up to 2001 events) Explain the decisions of demand management policies (fiscal and monetary) makers in the light of theoretical developments in these decades. How do you reconcile the development of theory and policy making in these years? Be thorough and answer in detail.
Question 2
What are the main reasons for financial crisis in 2008-2012? Explain the steps taken to correct this by Obama administration and the monetary policy of USA. What is the most important macroeconomic challenge US economy is facing currently (2022)? Be thorough.