Describe the macroeconomic equilibrium after the change in spending by millenials:

a. If the economy had been operating below full-employment equilibrium,

b. If the economy had been operating at a fullemployment equilibrium, and

c. Explain and draw a graph to illustrate how the economy adjusts in the two situations described in parts a and b.

Millennials, who spend an average of $85 a day, are expected to spend at a higher rate in the next 15 years. Only 37 percent of Americans report higher spending today than a year ago, while 42 percent of millennials say they are spending more. Millennials are spending more on rent or mortgages and leisure activities than they were spending a year ago.