ECO102 MACROECONOMICS (DL)

Assessment 2: Article analysis (20%; Week 8)

The article for the analysis will be provided as well as the questions to answer. The topics on Fiscal and Monetary Policies will be the target for this assessment.

Read the article (you can also watch related to the topic videos placed at the same webpage)

https://www.cnbc.com/2020/04/28/cnbc-fed-survey-the-us-will-need-to-spend- trillions-more-as-economy-takes-until-2022-to-fully-recover.html

Questions to answer:

1) That kind of the public policy is referred to in the article (contractionary or expansionary)? Explain.

2) When should this policy be introduced in the economy (regarding the stages in the business cycles)?

3) What are the actions in fiscal and monetary policies that should be considered during this stage of the business cycle? Provide examples and explanations.

4) What are the positive results of such a policy? You need to support your answer with the analysis of the main outcomes that are observable in the market.

5) What are the negative sides of such a policy in short and long run? Explain and support your analysis with some statistics.