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.)
I think that in light of everything happening, there is a recession coming. People are earning less because they are working less. They have less money to spend and manufacturing has gone down. This lowers the demand and the curve will go to the left. The economy when we come out of this will probably overheat because the demand for products and services will see a big boom. Companies will, in the short run, be unable to keep up with demand. The supply curve would not change but the demand curve will move to the right. This will drive prices up in the long run.
My Journey into Macroeconomics 