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Assignment:
The financial crisis of 2007-2008 led to what became known as the Great Recession.
Approximately 8.8 million jobs were lost, and the Federal Reserve responded by loosening credit constraints.
a. Based on the Grossman Model, provide two rationales for why we might expect health to increase during the Great Recession.
b. Based on the Grossman Model, provide two rationales for why we might expect health to decrease during the Great Recession.
(Hint: It will be helpful to use graphs to explain your answers.)
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