impact on Aggregate Demand and/or Aggregate Supply

1. Based on your own Internet research, identify an ?external shock? (within the last decade) to the U.S. economy and describe the impact on Aggregate Demand and/or Aggregate Supply. Include the government response (if any) to this shock and comment on its effectiveness.2. Why did the global economy fail to self-adjust during the Great Depression? Specifically, why didn?t sales and employment respond to the declining prices and wages as classical economists would predict?3. Based on your own Internet research, identify one example of a direct government spending, taxation, and transfer initiative in the 2009 Stimulus package. Explain which of these you feel will have the greatest impact on the economy and provide your rationale.4. Are tax rebates an effective way to stimulate the economy? Why or why not?

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