From a spending model perspective, explain the causes and dynamics of a recession

MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter14: The Financial Crisis And The Great Recessio
Section: Chapter Questions
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From a spending model perspective, explain the causes and dynamics of a recession
 
Identify and summarize the market dynamics triggered by changes in leakages and injections.
 
How measures like GDP, unemployment and inflation play  out in the different scenarios?
 
How do propensities and multipliers, and even expectations affect the outcomes in a downturn?

 

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