5-2 Discussion Aggregate Demand and Supply

5-2 Discussion: Aggregate Demand and Supply Hello everyone . I hope this homework week was a success for everyone. For some reason , it seemed to be so difficult to find a diagram for this prompt. I wanted to find something from the internet to make my work more diverse than just using the textbook example. However, I was able to finally find something I could analyze for this discussi on. The model I found was based on the changes in the GDP. So, that will be the factor for me to analyze how aggregate shifts affect GDP during The Great Recession . Based on the text about how GDP is calculated, it is known that four main factors must be addressed to know how the GDP for the economy is holding up or in the case of the Great Recession, failing to hold on to economic stability. In the first model on the left, it is fair to conclude that the aggregate demand is high due to the prices shifti ng to a higher rate. When prices rise, so do interest rates and that causes a rise in the inflation rate. Because the prices become higher during a recession to make up for the economic losses, there is a severe drop in the real GDP. With the GDP being the glue that holds all its components to a high rank, we