Using a sum of relevant economic theories (if require) for the justification of the answers. you can also use figures (i.e., supply and demand curves) for presenting their answers.

Consider the financial crisis 2007-2009 in USA. and assume that the crisis has been continuing for 10 years. We call this period as a long run period.

1) using 200 wrods to explain the effect of this crisis on USA government's Budget in long-run.

2) using 500 wrods to assume that you are a policy maker in USA's government and central bank; how you can recover the crisis by changing macroeconomic variables.

3) using 200 wrods.During the crisis, How USA can recover its output gap if it faces an expansionary gap

4) using 200 wrods.During the crisis, How USA can recover its output gap if it faces a contractionary gap.