Essay consisting of two questions, both weighted at 50% and 1000 words each. Tables and graphs must be hand drawn.
Question 1: A number of economic models have been developed to further our understanding of long-run economic growth. In this module, we focused on two of these models – The Solow Growth Model and The Romer Growth Model. Critically compare the two models in terms of their conclusions about what the main driver(s) of long-run economic growth are as well as in terms of their predictions for the potential for convergence between economies.

Question 2: The Great Depression was a severe economic downturn lasting from the stock market crash of 1929 to 1939. The financial crisis of 2007 to 2009 (the Great Recession) caused the deepest recession in the U.S. and world economies. We are now experiencing another crisis, the COVID-19 crisis. Using both the IS-MP diagram AND the AS-AD diagram, (i) compare and contrast these three crises (The Great Depression, the Great Recession and the COVID-19 crisis), (ii) explain the policy actions taken in each and the rationale and (iii) provide a critical review of the policy actions.

Intermediate macroeconomics