Role of a bubble


Task:

Answer the following questions:

Q.1 What was the role of fundamentals in the boom market of the 1920s? What was the role of a bubble?

Q.2 Why did Christina Romer title her reading "The Nation in Depression"? Why did she focus on the United States?

Q.3 Describe the changes to each of the components of GNP during the 1930s: consumption, investments, net exports, and government purchases.

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Macroeconomics: Role of a bubble
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