Question

Impact of financial crisis on aggregate economic activity

Answer 1

Financial crisis is a situations in an economy where by there may be no enough money in circulation due to political up-heals and may affect the economy in various ways one being;

Lack of enough capital to run the economic developments such as installation of money generating projects like irrigation.

It can also affect the economy in a way that there no qualified and skilled labor needed to perform the operations of  that economic sector.