Question 9 (10 points)

ECONOMIC FLUCTUATIONS (10 POINTS) In this course, we discussed what factors could cause a recession. Mention two (02) important factors that can cause a negative demand shock to the economy, and two (02) important factors that can cause a negative supply shock to the economy. Explain briefly each of them.

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Question 10 (10 points)

BASED ON THE INFORMATION PROVIDED IN THE DOCUMENTARY INSIDE THE MELTDOWN, ANSWER THE FOLLOWING TWO QUESTIONS: Who is THE most responsible person or institution for the 2007-2008 financial crisis? Choose only ONE. Explain why using between 3 and 6 lines. (10 POINTS)

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Question 11 (10 points)

Make three (03) specific recommendations to improve the regulation of the financial system so that the probability of another financial crisis is reduced significantly. Explain briefly each of your recommendations. (10 POINTS)

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Question 12 (10 points)

Based on the following table, answer the questions below (YOU MUST MAKE SOME CALCULATIONS TO ANSWER THE QUESTIONS): (10 POINTS) a) Comment on INFLATION i. between 1975 and 1990 (You must Calculate the inflation rate first). ii. between 1990 and 2008 (You must Calculate the inflation rate first). iii. between 2008 and 2006 (You must Calculate the inflation rate first). Hint: Inflation is calculated using which index? You must compute the inflation rate. b) Comment on the evolution (ups and downs) of REAL WAGES between 1975 and 2008 (You must calculate the percentual changes of the real wage over the period first)