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1. The dating of recessions is not done by the U.S. government. Rather it is done by a private organization, the National Bureau of Economic Research. Visit them on the web at <http://www.nber.org/cycles.html> and find out when the last recession took place.
2. Simple models with interesting adjustment patterns can be constructed using the idea of contingent behavior. For example, suppose that Peter will wear a tie only if Ed did the previous day, Ed will wear a tie only if Peter did the previous day, and Matt will wear a tie only if Peter did the previous day.
a) On Tuesday Peter is wearing a tie and Ed and Matthew are not. What will the adjustment path be?
b) On Tuesday Peter and Ed are wearing a tie and Matthew is not. What will the adjustment path be?
c) On Tuesday Matthew is wearing a tie and Ed and Peter are not. What will the adjustment path be?
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