Question: How could you use the aggregate demand aggregate supply AD AS framework
*How could you use the aggregate demand-aggregate supply (AD/AS) framework to explain the impact of the financial crisis of 2007-2009 on inflation and output in the economy?
Answer to relevant QuestionsName two distinct financial markets and describe the kind of asset traded in each. Display as a bar chart the periods since 1854 that are designated as U.S. recessions by the National Bureau of Economic Research (FRED code: USREC). Why has the frequency of recessions declined over time? Could improvements ...Explain why you might expect the recovery from the 2007-2009 recessions to be weaker than normal? For each of the following, explain whether the response is theoretically consistent with a tightening of monetary policy and identify which traditional channel of monetary policy is at work: a. Firms become more likely to ...Do you think the balance-sheet channel of monetary policy would be stronger or weaker if:a. Firms’ balance sheets in general are very healthy?b. Firms have a lot of existing variable-rate debt?
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