Question;ProblemsProblem 1List;three things that would cause a RIGHTWARD SHIFT in the Aggregate Demand;curve. List three things that would cause a RIGHTWARD SHIFT in the;Aggregate Supply curve.Problem 2There;has been extensive discussion of the "wealth effect." The argument goes;that inflated stock values were partially responsible for the strong;U.S. economy of the 1990's. Explain this linkage in words and then;illustrate with an Aggregate Demand/Aggregate Supply diagramProblem 3Explain the fundamental difference in the "Keynesian" view of the economy and the classical viewProblem 4Suppose;the government increases education spending by $20 billion. Based on an;MPC of 0.75, how much additional consumption will this increase cause?;Show your work.Problem 5Would a millionaire and a poor person have the same MPC? Explain thoroughly.Problem 6The;federal government increases spending by $1 billion to develop a new;fighter jet. If the MPC in the economy is 0.1, what will be the overall;spending effect on the economy? Show your work.
Paper#56198 | Written in 18-Jul-2015Price : $22