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Please answer the questions based on the attached PDF.

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Assessment 2: Article analysis (20%; Week 8)

The article for the analysis will be provided as well as the questions to answer. The
topics on Fiscal and Monetary Policies will be the target for this assessment.

Read the article (you can also watch related to the topic videos placed at the
same webpage)

Questions to answer:

1) That kind of the public policy is referred to in the article (contractionary or
expansionary)? Explain.

2) When should this policy be introduced in the economy (regarding the stages
in the business cycles)?

3) What are the actions in fiscal and monetary policies that should be
considered during this stage of the business cycle? Provide examples and

4) What are the positive results of such a policy? You need to support your
answer with the analysis of the main outcomes that are observable in the

5) What are the negative sides of such a policy in short and long run? Explain
and support your analysis with some statistics.

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