Question: How does rising consumer optimism affect the aggregate demand curve? Explain. What is stagflation? How would stagflation appear in the AD-AS model? What is meant

  1. How does rising consumer optimism affect the aggregate demand curve? Explain.
  2. What is stagflation? How would stagflation appear in the AD-AS model?
  3. What is meant by the term social insurance? Give an example of a social insurance program
  4. Why does a recession, all else equal, decrease the demand for money?
  5. The central bank of a government can print more money to pay for government deficits. Why do some refer to this practice as imposing an inflation tax?

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