aggregate demands question –


  • You have been hired as a consultant by your mayor to evaluate the increase in aggregate demand in the city where you live. Describe to the mayor one aggregate demand factor and one aggregate supply factor that would have the greatest impact on the economy of your city.
  • Explain how a decrease in aggregate demand affects each of the following variables: inflation rate, unemployment rate, production, and consumer confidence. Provide concrete examples to provide support for your response.

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