Before the establishment of the Federal Reserve, the financial system operated under the Gold standard, and consequently there was very limited government intervention in case of a recession or economic disruption. Please elaborate about how, in the case of the financial system operating under the Gold Standard, the 2020 economic disruption would affect the US economy. Please provide specific examples of industries and their impact on the size of the GDP decline and the subsequent recovery.

Q: Discuss how the current concerns regarding the Coronavirus factor into the GDP dynamic.  What are…

A: The pandemic has led various governments to take drastic measures to contain its spread. One of the…

Q: The global financial and economic crisis was preceded by massive current account disparities.…

A: A financial crisis in an economy refers to a steep decline in the value of its currency, suddenly.…

Q: Shown is the capital account for 2018 for the fictional country of Balancia. Given these entries,…

A: BOP is a record of a nation's transactions with the rest of the world. Foreign transactions are…

Q: Refer to the following table. What was the approximate output gap in 1971? Potential GDP Real GDP…

A: The GDP is an indicator of a nation's economic production during a given time frame, often one year.…

Q: Currency crises and the demand for dollars: Suppose there is a currency crisisin the rest of the…

A: Exchange rate is the price of a currency of one country in terms of the currency of another country.…

Q: AS/AD framework to explain the effects of this shock

A: The entire amount of products and services that consumers, companies, the government, and overseas…

Q: Causes of the financial crisis and the need of monetary cooperation.

A: If one or even more financial institutions or entities stop operating or operate inadequately, a…

Q: Figure 32-5 Refer to the following diagram of the open-economy macroeconomic model to answer the…

A: An economy that freely interacts with all the other countries without any restriction is known as…

Q: ALEX: Hi, Becky. I’m intrigued to see how macroeconomics allows us to explain recent economic events…

A: The financial system deteriorated as well, an event that deepened the economic downturn even…

Q: Please help me with 1 and 2. Thank you

A: 1. In 2001, President George W. Bush and Federal Reserve Chairman Alan Greenspan faced a challenging…

Q: Do the existence of SIFIs represent a threat to the economic stability of the country? Why or why…

A: A systemically important financial institution (SIFI) may be a bank, insurance, or alternative…

Q: domestic economy

A: Globalization refers to the method of accelerated interconnectedness and interdependence among…

Q: Complete the first row of the table to reflect the state of the markets in Mexico. Real Interest…

A: The supply and demand of loanable funds influence an economy's equilibrium interest rate. The…

Q: In the 1980s the behavior of the U.S. economy changed. What were the main factors driving that…

A: In the early Nineteen Eighties, the American economic system changed into struggling via a deep…

Q: Should the US pursue a negative interest rate policy? A complete answer will address the following…

A: According to FED meeting in June’2019, the most recent forecast showed that the U.S. GDP growth will…

Q: Which of the following is likely to occur for the United States, if the U.S. dollar appreciates…

A: Appreciation of currency means increase in the value of currency relative to other currency. When…