I have recently been given my first piece of coursework for economics at university and I am a bit lost.
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 Spain—that illustrate your answer (by identifying and describing two occasions/time periods that better fit with your answers.)
Could anyone guide me in the right direction?
Thank you