Model of aggregate demand and aggregate supply

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Consumer spending during holiday seasons affects the aggregate demand (AD) in the economy. AD drastically declines during serious recessions. In 1939, with the U.S. economy not yet fully recovered from the Great Depression, President Roosevelt proclaimed that Thanks giving would fall a week earlier than usual so that the shopping period before Christmas would be longer.

Explain what President Roosevelt might have been trying to achieve, using the model of aggregate demand and aggregate supply.

Was the policy effective to increase AD?

Reference no: EM13852582

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