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Other Papers on :Crisis

Other Papers on :Aggregate Supply and Demand, the Price Level

P/E/109. US Economy Recession: Excess Aggregate Supply

(2003, 1700 words)

Some economists believe that the US economy is heading for a recession due initially to excess aggregate supply. This has now been accentuated by a fall in aggregate demand. Using Blanchard's AS/AD analysis, the paper explains the implications of this view for output, prices, interest rates and employment in the short run and medium run. Also the paper assesses the likely effectiveness of recent US fiscal and monetary policy changes.
 
   
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