Friday, March 25, 2016
Gabbi Johnson, Chapter 9, Question 5
One point that I found interesting was that there is virtually no way to prevent or predict recessions since they are the result of a shock. Events like market crashes, sudden rises and falls of price, and terrorist attacks generally happen without much warning so the government doesn't have a chance to take time to devise a rebuilding plan. It must be created on the spur of the moment, possibly without full knowledge of the situation or its causes. This stuck out to me because most of the topics we have covered so far tend to follow what a graph can show. For example, if demand shifts one way, we can predict how supply will react based upon a graph. But since each recession is unique because of the time period, location, and causes, econimists have trouble creating a clear solution that will be correct in multiple instances.
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