Paper , Order, or Assignment Requirements

This case study is looks at Estonia and the economic choice it made in joining the euro. All of the information in the case study is accurate and describes the choice that Estonia made in 2009. You should answer the questions below based on the material in the case study and from the class notes. Your answer does not have to match what the actual Estonia did in 2009 – it may not have been the best policy. This is due at 2 p.m. on May 4, 2017 in my mailbox in the Economics Department – 302 Falmouth Hall 1. Explain the specific causes of the economic downturn in Estonia and demonstrate this using an Aggregate SupplyAggregate Demand Diagram. 2. What evidence shows that it would benefit the Estonian economy if it was part of the Eurozone? 3. How would the Estonian economy return to General Equilibrium if the government continues with its current macroeconomic policy? Explain and show in an Aggregate Supply-Aggregate Demand Model. 4. What factors would support the Estonian government using fiscal policy to deal with the current economic downturn? 5. What factors could limit the Estonian government using fiscal policy to deal with the economic downturn? 6. What factors would support the Central Bank of Estonian using monetary policy to deal with the economic downturn? 7. What problems could limit the Central Bank of Estonian using monetary policy to deal with the economic downturn? 8. How should Estonian government act to deal with the current economic downturn? Describe specific policy actions and show how the policy would work in an Aggregate Supply-Aggregate Demand Diagram. 9. Do you think Estonia should join the euro? Explain your answer.