1. Peer Post: During the recession, the Real gross domestic product (GDP) fell 4.3 percent from its peak in 2007 to 2009, the largest decline in the postwar era (based on data as of October 2013). Because the great recession was such a hard time, even home prices fell approximately 30 percent, on average, from their mid-2006 peak to mid-2009. The net worth of US households and nonprofit organizations fell from a peak of approximately $69 trillion in 2007 to a trough of $55 trillion in 2009 (Rich, 2013).

My Post: The economy's productivity capacity fell during the recession, which was evident on the supply side of the equation. Businesses encountered financial difficulties, which resulted in decreased investments and production levels, which affected the overall supply. These changes caused the AD/AS equilibrium point to shift toward a lower output level and increased unemployment. During the Great Recession, a reduction in real GDP and a rise in unemployment rates were caused by a decline in both aggregate demand and supply. Regarding the economic issue of unemployment, the Great Recession's changes in AD and AS had a significant influence. Businesses had to contend with weaker demand for their goods and services due to the decline in total demand, which resulted in lower production levels. As a result, businesses frequently had to lay off employees to adjust their staff to the decline in demand. The unemployment rate rose because of this.

1. Explain how the economic factors between the peer's post and my post are related. Also, share a news article (with a link) that presents a different perspective on the economic outcomes of the Great Recession from your peers' perspectives.

Answer rating: 100% (QA)

The economic factors discussed in both the peers post and your post are closely related and intercon... View the full answer