Read the following very short news
articles, then for each article:
1. Find and CIRCLE the
determinants of Aggregate Demand (AD) and/or Aggregate
Supply (AS) that have changed.
2. Show the effects of these changes on an AS/AD
graph.
3. Show the effects on the equilibrium Price Level (PL)
and Real Domestic Output (RDO).
4. State what happens to UE, IN, and EG.
Red Flag: U.S. economy may have hit
the pause button, by Patrick Gillespie, April 6,
2016
http://money.cnn.com/2016/04/06/news/economy/us-economy-growth-forecast-first-quarter/index.html?category=economy
Economists have dramatically cut
their forecasts for U.S. economic growth in the first
quarter of 2016. Falling car sales, equipment purchases by
businesses and a downward revision to consumer spending have
darkened the view.
The US Economy Has Reached A Turning
Point, The Economist, Oct. 5, 2014
http://www.businessinsider.com/the-us-economy-has-reached-a-turning-point-2014-10
The economy powered ahead. . . .
[G]rowth was boosted by improvements across all
sectors, including consumer spending, residential and
non-residential fixed investment, net exports and government
spending. . . . Lower energy prices will also provide a
lift, reducing business costs. . . .
The Economy Is Bad, but 1982 Was
Worse, By DAVID LEONHARDT, JAN. 20, 2009
http://www.nytimes.com/2009/01/21/business/economy/21leonhardt.html
So suffice it to say that the serious
recent declines in retail sales, business spending and
employment make it highly unusual that the economy will
improve anytime soon. . . . [I]t is hard to judge
the staggering stimulus numbers being thrown around
Washington whether [the Obama administration is]
running the risk of being too timid or too
aggressive.
1980-82 Early 1980s
Recession
http://vm136.lib.berkeley.edu/BANC/ROHO/projects/debt/1980srecession.html
Between 1980 and 1982 the U.S.
economy experienced a deep recession, the primary cause of
which was the disinflationary monetary policy adopted by the
Federal Reserve. The recession coincided with U.S. President
Ronald Reagan's steep cuts in domestic spending.
[Another] cause of the early 1980s recession was the
Iranian Revolution of 1979, which sparked a second large
round of oil price increases.
The Roosevelt Recession: (May 1937
- June 1938).
A Review Of Past Recessions By Dan Barufaldi
http://www.investopedia.com/articles/economics/08/past-recessions.asp
Reasons and Causes: The stock market
crashed in late 1937.
The Post-Korean War Recession:
(July 1953 - May 1954)
A Review Of Past Recessions By Dan Barufaldi
http://www.investopedia.com/articles/economics/08/past-recessions.asp
Reasons and causes: After an
inflationary period that followed the Korean War, more
dollars were directed at national security. The Federal
Reserve tightened monetary policy to curb inflation in 1952.
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