Suppose that the U. S. economy is initially in a long-run equilibrium, with aggregate demand and aggregate supply intersecting at the full employment level of output. Suddenly a recession hits the largest trading partner of the U. S. How does this impact the U. S. economy in both the short and long run, and across measures including unemployment, price level, and GDP

In each of the following, what happens to the unemployment rate? does the unemployment rate give an accurate impression of what’s happening in the labor market? a.esther lost her job and begins looking for a new one.b.sam, a steelworker who has been out of work since his mill closed last year, becomes discouraged and gives up looking for work.c.dan, the sole earner in his family of 5, just lost his $90,000 job as a research scientist. immediately, he takes a part-time job at starbucks until he can find another job in his field.