Aggregate economic effects of the combination

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Reference no: EM139124

Q1. Following are observations on the market cost and the quantity of good X produced and consumed in three different years: $10 and 100 units, $4 and 57 units, and $8 and 88 units. Can we conclude which the market demand for X slopes upward?

Q2. There is an increase in aggregate credit market risk, and the governments responds to this aggregate shock by increasing government spending so which aggregate income remains unchanged. Find out the aggregate economic effects of the combination of the shock to the economy and the government's response to it.

Reference no: EM139124

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