Y7

Please be a s thorough as possible*

Please read the case "Ben S. Bernanke in 2005" and answer the following questions:

Are fiscal and monetary policies in the US as of November 2005 expansionary or contractionary? Support your statement with evidence, data etc.

Analyze the global oil market and the impact of the increase in oil prices since 2002 on the US economy. Was the surge in the price of oil a temporary or a permanent one?

Economists at the National Association of Realtors (NAR) in early 2006 were concerned that speculative buying of homes in the US had risen substantially since 2000. "When these (homes are offered for sale) on the market all at once, there could be a glut and prices could soften considerably," NAR chief economist David Lereah said. There worries have by now materialized. What is the likely impact on the US economy?

Given the conditions in the oil and housing markets and the general state of the US economy, make a monetary policy recommendation for Chairman Bernanke.

The US was hit with the 2008-2009 financial crisis, during which the unemployment rate jumped to nearly 10%. Did you find any indications (from the case) that this would come?

In the coming months of 2023-2024, what do you think the state of the US economy will be? Will it continue to grow, remain static, or the country could head into a recession? Why? Please provide data/evidence to support your argument. (Hint: according to this case & the textbook, which indicators could predict the future state of the economy?)