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Managerial economics - Macro assignment

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DSS
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business...
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act

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documents in English
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case study
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6 pages
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  1. The evolution of the Portuguese economy over 2001-2006
    1. The evolution of indicators like the Q-gap, inflation and growth
    2. The policies pursued by the Government
    3. The private sector balance
    4. The external balance
    5. The process of economic adjustment over 2004-2006
    6. Shifting the LRAS curve
    7. Adjusting towards potential output
    8. Independent monetary policy
  2. US economic history since the 1960s

Describe the business cycle over 2001-2006 via the evolution of indicators like the Q-gap, inflation & growth.

In 2001 and 2002, Portugal's real GDP was bigger than the potential GDP, resulting to a positive Q-gap. That meant that firms were operating above capacity, translating into growth, limited unemployment but higher than normal inflation.

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