1. Discuss the income and consumption relationship make sure to define marginal propensity to consume. If you received an extra dollar, how much of it would you spend?
3. Explain: "Unemployment can be caused by a decrease of aggregate demand or a decrease of aggregate supply." In each case, specify price level outcomes© BrainMass Inc. brainmass.com October 9, 2019, 10:35 pm ad1c9bdddf
The income and consumption relationships are discussed.