(2) what is happening in the economy 2007-2009?

(3) are there any key words to consider?

1B. Draw the business cycle model, label axes and the four phases of a business cycle. THEN, on your model you made.

-----use the letter "A" to show where do you think the U.S. economy was during the Great Depression;

-----use the letter "B" where do you think the U.S. economy was during the mid-1960s;

-----use the letter "C" where do you think the U.S. economy was in Dec 2007 - June 2009, the Great Recession?

2B. Draw the AD-AS model that we have learned. Place the AD or Aggregate Demand Curve in the vertical section of the AS curve. Now, move the AD in the direction which shows increased total spending in the economy. What is the result?

2C. Draw the AD-AS model that we have learned. Place the AD or Aggregate Demand Curve in the horizontal section of the AS curve. Now, move the AD in the direction which shows increased total spending in the economy. What is the result?