Illustrate these events with AS or AD shifts:
Government increases defense spending.
The Headline story on p. 246.
Imported raw materials get cheaper.
Congress cuts corporate income tax.
Ch.9: Aggregate Demand
The table below shows disposable income and consumption for an economy.
$100 billion $90 billion
$200 billion $150 billion
a) what is this economys mpc?
b) what is this economys mps?
On the accomp
Ch. 8: The Business Cycle
Suppose you have $3,000 in savings when the price level index is at 100.
a) If inflation pushes the price level up by 10%, what will be the real value of
b) What happens to the real value of your savings if the p