Pessimism and aggregate demand .

Question

Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand? What should the Fed do if it wants to stabilize aggregate demand? If the Fed does nothing, what might Congress do to stabilize aggregate demand?

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Question

Chapter 21, Problem 4QR

To determine

Pessimism and aggregate demand.

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