Advanced Placement (AP), 16.04.2021 01:00 xman839
The Great Recession lasted from December 2007 to June 2009. Consider the two primary causes:
1) Widespread problems in financial markets and financial regulations, which affected the ability of financial institutions to lend funds.
2) A decrease in household wealth that was due to the collapse of the housing market.
Assume that at the start of the recession in 2017, real GDP was $16 trillion, and $12 trillion by 2018, but that the price level remained the same. On the aggregate demand–aggregate supply diagram below, use the drag tool to illustrate what occurred during the Great Recession given the two causes listed above.
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The Great Recession lasted from December 2007 to June 2009. Consider the two primary causes:
1) Wid...
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