02 Jun Question what influences our spending during the slow economy?
Question
what influences our spending during the slow economy? How much can our spending create the multiplier effects on the economy? Click lecture and find out about ‘MPC.’ Do you think an increase in government’s spending (G) can boost the Aggregate Demand (AD) in the recession? Why have businesses left it to the consumer to carry the nation recently? Look at the big corporations that have received the government bailout money. Think about the impact of the troubled big businesses on Aggregate Supply (AS). Analyze why the economy may operate below full-employment GDP in the short run. The long run AS = ? The answer is PPF (Production Possibilities Frontier) that we discussed in Week 1!
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