Unit 3: Economic growth and policies to counter a recession in the USA

Two video clips from the BBC; the first explaining that the USA is slowing down and may be heading for a recession, the second Bush explaining his policy to try and avoid the recession

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7190000/newsid_7195300?redirect=7195310.stm&news=1&nbram=1&nbwm=1&bbram=1&bbwm=1&asb=1 >

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7190000/newsid_7197400?redirect=7197449.stm&news=1&nbwm=1&bbram=1&nbram=1&bbwm=1&asb=1 >

a) Define what is meant by an economic slowdown
b) What reasons are given for the slowdown? Link these to the components of aggregate demand
c) What type of economic policy is Bush suggesting should be used to revitalise the economy?
d) How would his proposals effect the components of aggregate demand
c) Using an aggregate demand/aggregate supply diagram, explain what is likely to happen to the US economy as a result of this policy
d) Evaluate the likely success of his proposed solution