Between March and November of 2001,the U.S.economy experienced a recession at the same time that nominal interest rates fell significantly.Using the Keynesian model as the base of your analysis,what does this indicate to you about the cause of the cause of the 2001 recession? Be as specific responsible,using graphs to support your answer.

Question

Quizplus · Accepted Answer

The Answer is The fact that interest rates and output fell at the same time indicates that this recession was caused by a fall in the IS curve.