t's September 2009. You are Barack Obama, with the weight of the world resting on your shoulders. And now this: in addition to having to fend off Iran, "fix" healthcare, run General Motors and "get the economy moving again", swine flu is breaking out all over. You realize it's time to take out a pencil and think this all through. 9. Demonstrate in a neatly drawn ISLM figure that the outbreak of swine flu could induce a recession. In particular, show that, all else equal, a flu epidemic could cause a decline in real GDP, a rise in the real interest rate, and a jump in the price level. In considering this shock to the economy, start from a point of general equilibrium. Be sure to LIST key assumption(s) upon which your analysis depends, and to confine your explanation to why the curves are moving to <50 Joe