e Keynesian framework,

1. In the Keynesian framework, which of the following events might cause a recession? Which might cause inflation?

Explain your answers using Aggregate Demand/Aggregate Supply.

A large increase the price of the homes that people own.

Rapid growth in the economy of a major trading partner.

The development of a major new technology offers profitable opportunities for business.

The interest rate rises.

The good imported from a major trading partner become much less expensive.