Read the assigned Forbes article and summarize in at least 100 words. The Forbes article is about the future of the US economy, and the fact that a recession is on its way. The article states that a recession is going to happen in late 2023 or early 2024, and the time before that should be used to prepare for the recession. The only way to avoid a recession would worsen inflation, which would set the stage for an even worse downturn later. Later in the article we read about the time lag between monetary policy changes and real economic changes, which indicates when the recession will occur. The article talks about when we should expect a recession, based on a shorter or longer time lag than the historical average. In the end we can read about what businesses should do now to prepare for a recession. This includes contingency planning and a growth plan for the recovery.
Reflect on what we learned in the course, find at least one chapter in the textbook where we discuss the related topic, and explain how the chapter(s) is related to the reported event in the article. Do this in at least 100 words. I feel like chapter 7, Managing through the Business Cycle, is related to the Forbes article, especially the part about easy steps. However, chapter 5 and contingency planning is also very much related to the Forbes article, but I feel like contingency planning is also part of how to manage through the business cycle. At the end of the article we can read about what businesses should do to prepare for a recession. The best first step is contingency planning, and the easy steps are part of this. We can read about tips like staff cuts, reductions in capital spending, and tightening credit terms. This is very much related to what a business should do in the easy steps of recession preparation. This was my first idea, but I can also mention Monetary policy being highly related to this article.