Describe the ad and as equilibrium point


A. Describe the AD, AS equilibrium point.

B. Assume the federal government reduces its budget deficit by reducing spending, assume nothing else changes, what affect what affect would that have on the AD?

C. American consumers currently have a high, on average, level of credit card debt If consumers decided to reduce their spending on products and services and, instead, used that money to reduce their debt, what affect would this have on AD and AS?

D. When the federal government offered the "cash for clunkers" car program, how did this affect the AD and AS?

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Microeconomics: Describe the ad and as equilibrium point
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