Unit 2: Changes in AD and AS in action: The Irish economy

This great clip from Steph Flanders shows the effect of the recession on the Irish economy

http://news.bbc.co.uk/1/hi/business/8612688.stm

This article shows the response of some Irish citizens; the traditional route of Irish emigration to the rest of the world

http://news.bbc.co.uk/1/hi/world/europe/8616434.stm

a) Using an AD/AS diagram, explain the effect of the recession on the Irish economy and the government's macroeconomic objectives