Macroeconomics:
Project description:
In the AS/AD model, describe an economy where the level of production (Y) is below the natural level (Yn). Would the economy stay forever in this position?
Explain the adjustment process in the economy. Suggest a monetary policy or a fiscal policy to increase output. Analyse the effect of this macro-policy on the price level and employment. Find, collect, present and analyse data from one of the following economies –UK, Germany, France, Netherlands, Italy, or Spainthat illustrate your answer (by identifying and describing two occasions/time periods that better fit with your answers.)
Word limit: 1200 words (plus two pages: one page containing a maximum of 4 graphs and another page containing a maximum of 3 tables, make sure references to data sources are given; website links are fine)