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Times of recession flows through the economy

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How to Avoid Recession? Let the Fed Do Its Work Greg Mankiw wrote in 2007 on the eve of the Global Financial Crisis, "Congress made its most important contribution to taming the business cycle back in 1913, when it created the Federal Reserve System. Today, the Fed remains the first line of defense against recession." Source: The New YorkTimes, December 23, 2007. Describe the process by which the Fed's action in times of recession flows through the economy. Draw a graph to illustrate the Fed's action and its effect.

Reference no: EM131091565

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