Claim: Recessions are caused by excessive savings on the part of the public. People save buy less now. Will this cause an increase in producers' inventories? Will this behavior cause producers to reduce their levels of output and the number of employers? When people lose their jobs, they also spend less because their incomes decrease.

1. Evaluate (must have pros and cons) from a positive economic lens this claim that those who spend create a robust economy whereas those who save bring on economic recessions.
2. Graphically illustrate using the AD-AS model, this scenario to support your position. (Hint: use two separate graphs and be sure to label all curves and shifts in curves and the result of the shift in curves. Your graphs must include a minimum of three curves, LRAS, SRAS, AD)