Causes of a recession

by | Jul 27, 2021 | Homework Help

1. In the Keynesian framework, which of the following events might cause a recession? Which might cause inflation? Explain your answers using Aggregate Demand/Aggregate Supply. A large increase the price of the homes that people own. Rapid growth in the economy of a major trading partner. The development of a major new technology offers profitable opportunities for business. The interest rate rises. The good imported from a major trading partner become much less expensive.

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