US recession would cause severe job losses

The Seattle Times highlights a report that suggests that 'up to 5.8 million additional workers in the United States could join the ranks of the unemployed by 2011 if the economy were to fall into a severe recession.' The report from the Center for Economic and Policy Research (CEPR) also shows the likely impact of both moderate and severe recessions, lasting two years, on the average household budget. reference is made to the psychological impact of unemployment.

http://seattletimes.nwsource.com/html/businesstechnology/2004164165_jobsoutlook05.html

Use to the article to:

1. Think about the key features of a recession and its effects.
2. Analyse the predicted situation using AD/AS analyisis.