Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If
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Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate AD? What should the government do if it wants to stabilize AD?
If the government does nothing, should the central bank stabilize AD? If so, how?
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When consumer confidence decreases it typically results in reduced spending by households This decrease in consumer spending leads to a decrease in ag...View the full answer
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