Briefly discuss the factors that caused the recession of 2007–2009. Draw a dynamic aggregate demand and aggregate supply graph showing the economy moving from potential GDP in 2019 to potential GDP...

Briefly discuss the factors that caused the recession of 2007–2009.

Draw a dynamic aggregate demand and aggregate supply

graph showing the economy moving from potential GDP

in 2019 to potential GDP in 2020, with no inflation. Your

graph should contain the AD, SRAS, and LRAS curves for

both 2019 and 2020 and should indicate the short-run

macroeconomic equilibrium for each year and the direc

tions in which the curves have shifted. Identify what

must happen for the economy to experience growth during 2020 without inflation.