In the 2007-2009 period, the expenditure level in the United States intersected the 45° line below potential GDP, causing

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The intersection of the expenditure level and the 45° line below potential GDP suggests that the economy is operating below its capacity, indicating a recessionary gap. This means that there is excess supply of goods and services in the economy, leading to a rise in unemployment rates as businesses cut back on production and lay off workers.

In the 2007-2009 Period, the Expenditure Level in the United