Global Financial Crisis a) In 2009 the world was affected by the Global Financial Crisis. European Governments (e.g. Spain, Greece and the UK responded with Fiscal Austerity. The USA responded with Fiscal Stimulus Explain these two terms and how these policies applied in real world? (b) Since the 2009 Global Financial Crisis , which policy approach (Austerity or Stimulus) appears to have been more successful Also, I need graphs to show production possibility curve and effects of increases in aggregate demand(during recession) The following are resources may useful: New York Times, Oct 20 2012: How the fiscal stimulus helped and could have done more www.nytimes.coml2012l1ol21lbusinesslhow-the-fiscal-stimulus-helped-and-could-have-donemore. html Guardian, April 22 2013 : EU austerity measures offered few gains in 2012 www.guardian.co.uklbusinessl2013laprI22leuropian-austerity-measure-little-gains BBC News May 21 2012 EU austerity drive country by country www.bbc.co.uklnewsl10162176 Policymic : Austerity didn’t work in Europe and the US should take note. www.policymic.comlarticles/8029lausterity-didn-t-work-in-europe-and-the-u-s-should-take-note