Final answer:
The 2008 recession revealed the fragile nature of the economy following technological investment booms when assets were found to be overvalued. Unemployment rates and business failures surged, and demand for financial capital significantly decreased as confidence in the economy waned.
Step-by-step explanation:
During the technological advancements in 2007 and the subsequent recession in 2008, several economic changes occurred. Financial optimism led to a significant technology investment boom, shifting the demand for financial capital to the right. However, as the 2008-2009 Great Recession took hold, banks and households found their assets to be worth less than anticipated, leading to widespread economic turmoil.
The recession yielded high unemployment, with the number of jobless Americans soaring from 6.8 million in May 2007 to 15.4 million by October 2009. Small business closures, mass layoffs, and reduced household spending, which fell by 7.8%, were some dire consequences of the downturn. These conditions reflected a shift in the demand for financial capital to the left, at any given interest rate, indicating decreased confidence in investments and economic growth.