Discuss about the following questions using your understanding about the dynamics of Aggregate Demand and Aggregate Supply Model.
1) What is the cause of the 2007-09 Great recession?
2) What happened to aggregate demand and aggregate supply model during this crisis?
3) What role did the commercial and investment banks played in this crisis?
4) What role investors’ confidence played in the financial crisis; could the crisis been prevented. Why or why not?
5) What was the role of the Fed before and after the crisis? should they have done it differently to prevent the crisis?
6) Should commercial banks been allowed to enter in investment banking? Why or why not?