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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 37
Use the following news clip to work Problem.
Consumer Sentiment in U.S. Rose to Three-Month High
Consumer sentiment was up in August helped by merchant discounts, especially from auto dealerships who received incentives from automakers Honda, General Motors, and Toyota to lower prices.
But consumers are worried about the future. They are worried about tax changes and government budget cuts that are on the horizon. Capital spending fell somewhat.
Which of the events reported in the news clip would change aggregate demand and which would change the quantity of real GDP demandedProvide a graphical illustration of the distinction.
Consumer Sentiment in U.S. Rose to Three-Month High
Consumer sentiment was up in August helped by merchant discounts, especially from auto dealerships who received incentives from automakers Honda, General Motors, and Toyota to lower prices.
But consumers are worried about the future. They are worried about tax changes and government budget cuts that are on the horizon. Capital spending fell somewhat.
Which of the events reported in the news clip would change aggregate demand and which would change the quantity of real GDP demandedProvide a graphical illustration of the distinction.
Explanation
Verified
Verified
Change in aggregate demand:
The auto de...
Macroeconomics 11th Edition by Michael Parkin
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