Aggregate production functionCrowding out

Assignment #5 - Aggregate Production Function & Crowding Out 1. Aggregate Production Function a. Draw the aggregate production function. Explain the different between movement along the curve and a shift in the curve. Be sure to explain what causes movement along the curve and a shift in the curve. b. Identify three (3) public polices that could lead to more economic growth and explain why growth would occur. 2. Crowding Out a. Draw two correctly labeled loanable funds market graphs. Use the graph to explain why crowding out caused by an increase in deficit spending can be showed as either a decrease the supply or an increase in demand