Economics
a) Why is the sub-prime mortgage-led financial crisis being viewed as the worst financial crisis since the Great Depression? (50%)
b) How has it impacted on the global economy so far? (50%)
a) In an economics context, explain the definitions of inflation, (10%)
deflation and stagflation.
b) In what circumstances will they occur, and if they occur, (45%)
what will the likely effects be on the economic environment?
c) What policies should a government implement to maintain economic stability in response to these respective economic conditions?(45%)
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