QUESTION 15 if consumer sentiment suddenly declines: (Consumers and business suddenly expect economic growth to decrease

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Question 15 If Consumer Sentiment Suddenly Declines Consumers And Business Suddenly Expect Economic Growth To Decrease 1 (27.11 KiB) Viewed 48 times

QUESTION 15 if consumer sentiment suddenly declines: (Consumers and business suddenly expect economic growth to decrease, and consumers are less willing to spend) a. What will be the effect on money demand, money supply, and interest rates? Please explain. b. What will be the effect on AE, and GDP? Please explain c. In the short-tun What will be the effect on AD and SRAS? What will be the effect on the average price level? Please explain d. In the long-run: What will be the impact on GDP and the average price level? 6. In response to the decrease in consumer sentiment, if the Fed wanted to stabilize output: What action should the Federal Reserve take? Picase explain For the toolbar, press ALT+F10 (PC) or ALT+FN-F10 (Mac), BI VS Paragraph Arial 10pt 111 A 2 TX E. X X 1992 2