Using the AD/AS model, explain the reasons for the Great Recession. What factors (the AD or the AS factors) triggered the recession in 2008? How did the collapse of the real estate market affect these components? Â You can use your findings from the bea table 1.1.1 for 2008-09.
The US economy (as well as other countries around the world) entered another recession almost 12 years after the Great Recession due to Covid-19. Please first read the following articles about the Covid-19 economy. Using the AD/AS Model, explain the shifts in the AD and AS. What are the causes of the Covid-19 recession?
In each part, please use just the AD/AS Model and their components in your answers (Remember that the AD components are C, I, G, (X-M), and the AS components are mainly resources, productivity, and technology).
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