written portion of an exam

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Suppose that the economy enters into a major recession brought on by a financial crisis that stems from a real estate bubble bursting and the ensuing fall in real estate (asset) prices. In two paragraphs and using graphical analysis from the graph provided below, explain how the Classical view of the return to long run potential output can be complicated by feedback effects in the AS/AD model. Be sure to explain what is causing these feedback effects.


Your essay needs to be a minimum of two paragraphs with size 12 font. Please type or copy and paste your essay into the textbox below. MLA or APA format is not required.

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