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ECO 561 WEEK 4 TEAM ASSIGNMENT BUSINESS CYCLES,
ECONOMIC SHOCKS, AND RESTORING EQUILIBRIUM
As a manager, it is important to understand how the business cycle
affects supply and demand, prices, and how economic shocks will
impact your company's markets, supply chain, and financing. The
recent collapse of the housing market, the near failure of our financial
system, the wild swings in commodity and stock prices, and the deep
recession of 2007-2009 provide a virtual laboratory for the study of
the economic shocks and stabilization measures taken to restore
equilibrium.
Create a 1,400-word analysis based on the team's assigned market in
which you include the following:
Analyze the economic and sociological forces that drove the market
equilibrium to unsustainable heights and the shocks that brought the
markets back down. What might be done to moderate the effects of
these economic swings?
Discuss specific changes in supply and demand.
Examine prior government policies and legislation that exacerbated
the impact of the shocks.
Evaluate the actions of the federal government and the Federal
Reserve to restore equilibrium. How effective were these countercyclical policies?
Cite a minimum of three peer reviewed sources not including the text.