Question 1. What is the current business cycle situation in the U.S. today (Fall 2009)? Discuss each sector of aggregate demand (C+I+G+X), interest rates, and inflation.
Question 2. What macroeconomic policy mix do you anticipate that the President and the Federal Reserve FOMC will set for 2010? Where would you find the formal statements of these policies?
Question 3. Give a specific example from the 1920's, 1960's, 1970's, or 1980's to indicate the probable outcome of these policies in 2010-2011. (draw an AD/AS or IS/LM graph to illustrate)