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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
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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