Discussion Assignment

Watch the following “time motion” video of unemployment in the United States during the “Great Recession” of 2008. As we will learn in Macroeconomics, 4.5% is the “Full Employment Rate of Unemployment.” This means that there is a job available for everyone who wants one, without the production of inflation. Americans are earning and are able to spend.

Discussion Question:

Use the Circular Flow model to offer an (1) an explanation of the economic downturn or (2) a solution to the economic collapse.

Feel free to speculate on the interconnections of the Circular Flow Model.

It is required to post a 200 word response to the question.

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