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.
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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