Analyze the effect on the product market of falling business and consumer confidence in the economy using the Aggregate Expenditure (AE) model; and demonstrate how changes in the product market transmit into the money market and the foreign exchange market - and in turn affect the product market, evidencing the continuous flows between markets

AE model analysis - remember to explain the transition to the new equilibrium - discuss and illustrate.

Demonstrate how changes in the domestic product market transmit into the money market and the foreign exchange market.

money market and exchange rate market analysis - remember to explain the transition to the new equilibrium - discuss and illustrate

Demonstrate and discuss how in turn the changes in the money market and the foreign exchange markets affect the product market, evidencing the continuous flows between markets.

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Analyzing Falling Confidence in the Product Market Money Market and Foreign Exchange Market using the AE Model Aggregate Expenditure AE Model Analysis Initial Equilibrium The economy operates at a poi... View the full answer