ECON 1007 MACROECONOMIC

36.

READ the news article: https://www.abc.net.au/news/2022-11-08/consumer-confidence-plunges-below-gfc-lows-christmas-scrooge/101628696

The ABC news corporation in november 2022 reports that consumer confidence in Australia has plunged below the levels seen during the global financial crisis, causing a record number of household to slash their christmas spending plans. According to the ariticle, what are the main causes of loss in consumer confidence? use the static aggregate demand and aggregate supply model to show what happens in both the long run and the short run when there is a decline in consumer confidence.