the stock market crash , Accounting Basics

The 2001 Recession: It is November 2001 and the U.S. Stock market has plummeted and the recent September 11th attacks have hurt consumer condence. Businesses have stop hiring and consumers have reduced consumption. You are an advisor to President Bush.

a.By Using the IS-LM model graph the condition explained above. Start with an equi-librium before the stock market crash and September 11th and show the effects ofa reduced in consumption.

 

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