• Section 2. (25%) The Eurogroup is discussing issuing Bonds to cushion the economic downturn. o In the
Euro:one, which institution oversees monetary policy, and which one controls fiscal policy? o The main
goal of the European Central Bank is controlling the inflation. Why it is so important? To answer this
question: o define aggregate demand and aggregate supply in the long-run and short-run (use graphs),
and explain the main effects of rising prices In the economy usini the concepts delivered in class.
• Section 3 (25%)Fiscol and monetary policies
o Provide information on fiscal and monetary policies that are being (or are planned to be) implemented as
a response to the coronavirus crisis to prevent a fa of aggregate demand. o Provide two examples of
fiscal policies in face of an economic crisis and discuss their positive and negative effects on the
aggregate demand. Use the concept of 'multiplier effect' and crowding-out effect " delivered in class. This
section must include a written explanation.
J • Section 4. (25%)COlOnindfur crisis will certainly cause o fall in global trade. r o Explain what the
expected impact of the fat in international trade on the Eurozone economy might be. Use the AD/AS model
and the concepts delivered 11, . 8. This section must Include a wrkten explanation as well as charts.
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