1a. i) The macro model use this far assumes that the economy is closed. Because of this, do you think the model is usele

[answerhappygod]

1a. i) The macro model use this far assumes that the
economy is closed. Because of this, do you think the model is
useless? ii) If the price level increases then
aggregate consumption drops. Is this statement true or false?
iii) Why most economic models assume that government spending is an
exogenous variable? iv) Why prices are sticky in the short run? v)
In the UK, when demand increases, firms prefer to increase thru
production using overtime workers rather than hiring new workers.
Why is this the case?
1b. Use the aggregate demand diagram to predict the
impact on the AGGREGATE DEMAND CURVE if there is: i) an increase in
consumers expected income, ii) an increase in expected inflation
and iii) an increase in interest rates, and iv) an increase in
GDP.