Explore BrainMass
Share

Explore BrainMass

    Aggregate expenditure function transformation

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Explain how the aggregate expenditure function shifts in response to changes in each of the following variables:

    a. The real interest rate increases.
    b. Consumer confidence decreases.
    c. Higher taxes are imposed on business profits.
    d. The economies of many countries in the rest of the world go into recessions.

    © BrainMass Inc. brainmass.com October 9, 2019, 11:17 pm ad1c9bdddf
    https://brainmass.com/math/graphs-and-functions/aggregate-expenditure-function-transformation-251686

    Solution Summary

    This provides examples of how the aggregate expenditure function is affected by variables.

    $2.19