1.) What monetary and fiscal policies might be prescribed for an economy in a deep recession?

2.) Here are four industries and four forecasts for the macroeconomy. Choose the industry that you would expect to perform best in each scenario.

Industries: housing construction, health care, gold mining, steel production

Economic Forecasts:

Deep recession: falling inflation, falling interest rates, falling GDP

Superheated economy: rapidly rising GDP, increasing inflation and interest rates

Healthy expansion: rising GDP, mild inflation, low unemployment

Stagflation: falling GDP, high inflation

3) Which of these do you see the as the current condition of the U.S. economy? Why?