Fiscal Policy, Monetary Policy, and Business Cycle (11. Go back in time and consider the Goldman Sachs article on the next page. Assume there was no COVlD-19 pandemic. (a) ('3) Use the Goldman Sachs article to explain in your own words what the outlook ofthe economy was for 2019-2020 in terms of economic growth, unemployment, labor cost, inflation, and other macroeconomic risks outlined. Use key facts and concepts to illustrate. Goldman Sachs in their Macro Outlook for 2019 also said \"...we expect 4 more [interest rate] hikes in 2019... to bring the... [federal] funds rate to 3.258.596...\" Why Goldman Sachs was expecting the Fed to raise interest rates in 2019? Use the attached article and your understanding of what was happening in the economy to explain your answer. (12. Consider the following business cycle for the U.S. economy. GDP Business Cycle Tlrne According to the NBER, the U.S. had the shortest recession in history during the year 2020. Economic activity peaked in February 2020. The recession lasted two months and ended in April 2020. (a) Write \"Dec 2019\" on the time axis to show where the U.S. economy was in December 2019. (b) Write \"Mar 2020\" on the time axis to show where the U.S. economy was in March 2020. (c) Write \"Jan 2022\" on the time axis to show where the U.S. economy is likely to be in January 2022. (d) Explain how fiscal policy is generally used to help bring the economy out of a recession. Highlight some of the positive and negative consequences of such a fiscal policy. [Hintz Talk about the impact of government spending, taxes and budget deficit (or surplus as the case may be} on the economy.] (e) Explain how monetary policy is generally used to help bring the economy out of a recession. Highlight some of the positive and negative consequences of such a monetary policy. [Hint: Talk about how the Federal Reserve Bank (Fed) changes interest rates and how this affects consumption, investment, exports, imports, GDP and economic growth.]