Aggregate demand curve on potential output
Problem: List three factors that can change the economy's potential output. What is the impact of shifts of the aggregate demand curve on potential output? Illustrate your answers with a diagram.
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In a certain year the aggregate amount demanded at the existing price level consists of $100 billion of consumption, $40 billion of investment, $10 billion of net exports, and $20 billion of government purchases. Full-employment GDP is $120 billio
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Explain how tax credit to a business would help to stimulate the economy? Are CEO's in the U.S. paid too much? Support your answer?
List three factors that can change the economy's potential output. What is the impact of shifts of the aggregate demand curve on potential output? Illustrate your answers with a diagram.
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Problem: What condition would our economy be presently in and what type of stimulus and healthcare package would we be seeing if, by a silly quirk of fate: a) The Prez was from Arizona, the Vice-President was from Alaska (last years's GOP ticket)
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