(a) Why didn't the 9/11 shock trigger an episode like the Great Recession that started years...

 

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(a) Why didn't the 9/11 shock trigger an episode like the Great Recession that started years later in 2007? Support your explanation with suitable diagrams. (b) Why didn't the expansionary monetary policy pursued by the Fed in October 2008, following the Great Recession of 2007 shock, cause inflation, even after the economy reached full employment well before 2020 when the worldwide Covid pandemic began? (c) What are the likely causes of high inflation in 2022? Justify your answer. (a) Why didn't the 9/11 shock trigger an episode like the Great Recession that started years later in 2007? Support your explanation with suitable diagrams. (b) Why didn't the expansionary monetary policy pursued by the Fed in October 2008, following the Great Recession of 2007 shock, cause inflation, even after the economy reached full employment well before 2020 when the worldwide Covid pandemic began? (c) What are the likely causes of high inflation in 2022? Justify your answer.

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Solution a In recent years periods of economic decline have occurred in America These periods have been called Recessions and the most recent one was the Great Recession Economists argue that the Grea... View the full answer