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1.(Stagflation) what were some of the causes of the stagflation of 1973 and 1979? In what ways were these episodes of stagflation different from the great depression of the 1930s?
2. Terrorist attacks foster instability and may affect productivity over the short and long term. Do you think the September 11, 2001, terrorist attacks on the World Trade Center and the Pentagon affected short- or long-term productivity in the United States? Explain your response and show any movements in the PPF.
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
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When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.
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