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Posted: September 28th, 2022
Discussion: Aggregate Demand and Supply
Discussion: Aggregate Demand and Supply
Between 2007 and 2009, the United States experienced a severe financial crisis and economic downturn commonly known as the Great Recession. Starting in 2006, housing values fell 30%, causing losses in mortgage-backed securities for families and financial institutions. The recession was marked by a drop in aggregate demand that caused a decline in GDP and an increase in unemployment.
In your initial post, draw or find an example of an aggregate demand and aggregate supply (AD/AS) model that illustrates the general trends of the U.S. economy during the Great Recession. (The example may be from your own research or from the textbook.) In addition to your image, provide a response to the following: In your first post, draw or find an example of an aggregate demand and aggregate supply (AD/AS) model that shows the general trends of the U.S. economy during the Great Recession. (The example could come from your own research or from the textbook.) In addition to your picture, please answer the following questions:
How did the AD/AS equilibrium change over time? Support your claims by referring to your AD/AS model.
Select an economic factor (GDP, unemployment, price level) and explain what impact any shifts in AD or AS (or both) had on your chosen factor
Use this book as one of the references. Mankiw, N. G. (2021). Principles of Economics. (9th ed.). Cengage
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