How do changes in income affect consumption

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1. How can changes in real GDP equilibrium occur in the aggregate expenditures model and how do these changes relate to the multiplier? How do economists integrate the public sector (government expenditures and taxes) into the aggregate expenditures model?

2. Find a business letter that you find especially effective and explain why. This can be a junk mail letter, a rejection for a job, a complaint, etc. When formulating your response: identify the message, purpose, words, and phrases used that create appropriate tone; does it use a direct or indirect approach? Use your text to formulate your response.

3. How do changes in income affect consumption (and saving)? What are factors other than income that can affect consumption?

4. If you were designing a discretionary benefits program for your office, what are some of the basic design concerns you would take into consideration?

Reference no: EM132208742

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