Worksheet.Homework

Worksheet.Homework - Name _ 1. The Conference Board...

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Name ____________________________________________ 1. The Conference Board publishes the Consumer Confidence Index (CCI) every month based on a survey of 5,000 representative U.S. households. It is used by many economists to track the state of the economy. A press release by the Board on April 29, 2008 stated: “The Conference Board Consumer Confidence Index, which had declined sharply in March, fell further in April. The Index now stands at 62.3 (1985 = 100), down from 65.9 in March.” As an economist, is this news encouraging for economic growth? o No, because it is likely to result in less consumer spending. o Yes, because it is likely to result in more business spending. o This news has no effect on economic growth In the space below, graph and explain why your response above makes sense. 2. Using the AD-AS model, graph and explain what happens to equilibrium price and equilibrium level of real GDP in response to an increase in business taxes (assume aggregate supply is constant for now). 3.
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This document was uploaded on 11/03/2011 for the course ECON 222 at Cal Poly.

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Worksheet.Homework - Name _ 1. The Conference Board...

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