Discussion 5 post

Possible Points: 50

Recently, there have been comparisons between todays economy and the 20082009 Great Recession (GR). Some argue that the COVID-19 pandemic recession is materially different from the GR, while others argue there are many parallels. As you learned in your reading, policymakers in both eras were confronted with a sudden decrease in aggregate demand.

In your initial post, draw or find an example of the aggregate demand and aggregate supply (AD/AS) model that illustrates the general trends of the U.S. economy during both crises. The example may be from your research or the textbook (see Chapter 34).

Note: Use the Insert Image button in the discussion menu to attach your image. Review the following resources for help taking a screenshot:

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In addition to your image, respond to the following:

• Using the four steps for analyzing macroeconomic fluctuations, explain how the AD/AS equilibrium changed over time. Support your claims by referring to your AD/AS model’s AD shift.
• Select an economic factor (GDP, unemployment, or housing price level) and compare its values during both crises.
• What policies and strategies did the U.S. government use to deal with the GR and then to deal with COVID-19?
• What do you see as the source of future U.S. macroeconomic growth?