The economy is doing just fine and the market for bonds is at equilibrium at $1000 and a quantity of 500 The economy then goes into a recession (Business Cycle Contraction). 1) Based on the material in the text and our discussion, Explain the SHIFTS in both the supply and Demand Curves for BONDS. NO explanation = no points 2) What will be the New magnatudily correct equilibrium Price and Quantity. Everyone can have different yet correct numbers. Hint: remember who the curves represent. We spent considerable time on Tuesday talking about this... This makes it much easier