Explain what happened in these two time periods?

Macropoland a country that is a natural gas and oil importer has a natural rate of unemployment (a Show more Macropoland a country that is a natural gas and oil importer has a natural rate of unemployment (at the full employment level of GDP) that is about 4.5% and the long run average rate of inflation over time has been about 2%. However during the period 1973-1974 the country experienced an inflation rate of about 15% while simultaneously experiencing unemployment of nearly 13%. At the present time Macropoland is experiencing very sluggish consumption and investment (a result of a fall in the housing market) and unemployment has again edged up to around 9%. Inflation is very low at 0.4%. Macropoland has just hired you as their economic advisor. You have a big job ahead of you. Using your knowledge of aggregate demand and aggregate supply can you Explain what happened in these two time periods? Show less

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Approximately 250 words