For the Smart People, Pre-Interview Question

So I go to a non-target, but one of my friends dads is a MD at a BB in Chicago. He was able to get me an interview outside of the normal times. I was given a pre-interview question example to answer and bring with me. They told me they will ask a similar question, so I want to write a perfect example so I'd be ready for something else.

Analyze the current state of the economy: does the economy appear to be recovering from a supply shock, or showing the signs of a recent, large demand shock, cruising along a normal, robust growth path or what?

I was given this answer below:

Over the past year, our economy has experienced the first signs of a recession. The economy has been faced with two supply shocks in 2008 - a slowdown in construction and a shock in terms of oil. When oil prices started to rise five years ago, experts speculated that circumstances were different from earlier recessions. However, once observing the data from the past year this does not seem to be the case. Construction reached its peaked two years ago, but now is experiencing a downturn as homes were overbuilt. This slowdown in construction has begun to effect consumer spending. With rising unemployment, wage increases that are lagging inflation, higher interest rates, falling household wealth and negative consumer expectations, consumer spending growth has halted. These supply shocks have caused stagflation decreasing the amount of spending and increasing prices; meaning that inflation has increased as well as the unemployment rate. Over the second part of this past year, our economy has appeared a bit different attempting to recover from the supply shocks earlier in the year. It has been hit with a financial crisis causing an increase in the demand for money as spending has been less rapid, decreasing velocity. This demand for money has lowered inflation but unemployment still continues to increase. The Fed is attempting to intervene by increasing the monetary supply; however, this is not counteracting the demand very much. This current economic downturn seems to be far from over and could break the duration record for U.S. recessions.

And this is the question:

Given your conclusion on the state of the economy, make and justify your policy conclusion and include a summary statement written in the form used by the Fed.

Any help would be highly appreciated,