Question: For the analysis paper you will need to find an article online that describes an event that can be interpreted as a shock to the
For the analysis paper you will need to find an article online that describes an event that can be interpreted as a shock to the economy. A shock is something that disturbs the economy's equilibrium. You will then use the basic to predict the effects of the shock on all of the variables of interest: output, the interest rate, consumption, investment, real wages, and work effort. You should discuss the importance of the shock for the economy as a whole; that is, is it a large or a small shock. The paper must be based on an article from the last six months and should include a link to the article. Instead, you should prepare you work for an audience of intelligent lay people who, by misfortune, have not taken the principles of macroeconomics.
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