According to the concept of a recession, it may then take years, even a decade or more, for consumers, banks, and the government to pay down their excessive debts. During this recession a nation may have to endure very slow growth, no growth or even negative growth (deflation) before an economy can return to a healthy level of employment.

David consumes two things: gasoline (q 1) and bread (q 2). david's utility function is u(q 1, q 2)equals70q 1 superscript 0.5 baseline q 2 superscript 0.5. let the price of gasoline be p 1, the price of bread be p 2, and income be y. derive david's demand curve for gasoline. david's demand for gasoline is q 1equals nothing. (properly format your expression using the tools in the palette. hover over tools to see keyboard shortcuts. e.g., a subscript can be created with the _ character.)