Explain the effects of a global recession on the U.S. macroeconomic equilibrium in the short run. Explain the adjustment process that restores the economy to full employment.

Use the following information to work Problems 9 and 10.

Brexit means a bumpy road ahead for the U.K. economy The decision by the U.K. people to leave the European Union has already brought a sharp fall in the value of the pound and is expected to lower business and household spending.

Source: Financial Times, June 24, 2016