This chapter is all about short term fluctuations in the economy – recessions and booms. After reading the chapter what do you think about the current US (or Colorado) economy? Is a recession coming soon? Why or why not? Is the economy in danger of overheating? Why or why not? (This is part of why you take economics — to forecast the future. Economists are notoriously bad at that, but it is still a useful exercise to ensure you understand what might drive changes in the economy.)
This post comes at a very interesting time in our society and the world. We are currently working through the COVID situation and the US is virtually shut down, especially Colorado. I believe we are already in a depression, not recession. The falling incomes and rising unemployment has been massive since the virus hit. Regardless of what the help the government is trying to provide families and businesses there will be closures and people and businesses that will have a very hard time coming back, if they even can. Pre-COVID I believe the economy was in danger of overheating. Especially in Colorado. The cost of housing and life was starting to become unattainable for the average person. Many people in the area were feeling the effects of inflation.
Principles of Macroeconomics Spring 2020 