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Consider the financial crisis 2007-2009 in USA. Now, assume that the crisis has been continuing for 10 years. We call this period as a long run period 4. Explain the effect of this crisis on USA’s labour market in long-run? (200 words) (2 marks) 5. Explain the effect of this crisis on the levels of Americans’ consumption in long-run? (200 words) (2 marks) 6. Explain the effect of this crisis on the levels of USA’s investment in long-run? (200 words) (3 marks) 7. Explain the effect of this crisis on USA government’s Budget in long-run? (200 words) (2 marks) 8. Assume that you are a policy maker in USA’s government and central bank; how you can recover the crisis by changing macroeconomic variables? (500 words)
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