1. If the economy went into a recession, but you were not directly affected, do you think you might change your consumption patterns/choices? Do you remember if you or your family changed your spending habits at all during or after the 2008 recession?That recession was over a decade ago, so you might want to ask someone (a family member, friend, or whomever) about their recollections and decisions if you don't remember what happened.Feel free to discuss any of these.
2. Following the recession of 2008, the rate of savings in the United States doubled. Why do you think this is?How do you think the increase in savings affected overall consumption?Since, on average, 70% economic activity in the United States is based on consumers (just like you) purchasing goods and services for consumption, how do you think the increase in savings affected aggregate expenditure?Please respond to these questions using your understanding of the aggregate expenditure model.