In this paper, you will use the aggregate demand/aggregate supply model to
analyze a historical economic downturn in the United States. By historical, I
mean an event that occurs prior to 2020 and excludes the 2007-2009 recession.
You need to choose a business cycle downturn from the list of historical downturns at the following link:
http://www2.nber.org/cycles/
Your paper should be divided into two parts: summary and analysis. In the
summary section, you need to describe the specific historical circumstances leading to the downturn you are analyzing. You must cite at least two scholarly
sources (academic journal articles or pieces published in legitimate news periodicals) which describe the historical events leading to the downturn. In the
analysis section, you should describe: (A) the source of the downturn (aggregate demand shock or aggregate supply shock), (B) the outcomes for output,
unemployment, and inflation in the short-run, and (C) the long-run effects for
output, unemployment, and inflation, as well as any policy response. Your analysis should feature two separate diagrams depicting the AD/AS model, one with
a graph of the short-run effect, one with a graph of the long-run effect. You
need to explain the assumptions behind any shifts of AD/AS curves that you
draw, and fully elaborate on the underlying economic intuition. Make sure all
curves and axes on your graphs are clearly labeled.

Papers should be 3 to 4 pages in length, use standard APA or
Chicago formatting, with appropriate citations, double-spacing, and Times New
Roman font.