From a spending model perspective,explain the causes and dynamicsof a recession.

However,to helpget you started, consider that recessions seem to demonstrate that expenditures and incomes depend on each other.If markets do not self-adjust,consider how a decline in spending can lead to a negative process that ruins an economy?(Consider implications of gaps in the"Keynesian Cross"and/or the"Aggregate Demand/Aggregate Supply Diagram"to illustrate your points.)

Hints -- Within your answers, consider the following:

--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?