The Eurogroup is discussing issuing Bons to cushion the economic downturn.

o In the Eurozone, which institution oversees monetary policy, and which one controls fiscal policy?

The main goal of the European Central Bank is controlling the inflation. Why it is so important? To answer this question:

o define aggregate demand and aggregate supply in the long-run and short-run (use graphs), and

o explain the main effects of rising prices in the economy using the concepts delivered in class.