Asked Oct 21, 2019

suppose that the election of a popular candidate suddenly increases people’s confi- dence in the future. Use the model of aggregate demand and aggregate supply and a graph to analyse the effects on the economy.


Expert Answer

Step 1

The aggregate demand curve is defined as the sum total of all expenditure in the economy. The increased confidence of the people due to the election of a popular candidate will lead to an increase in the expenditure of the economy as the...

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