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Go to the BEA website wwwbeagov On the left tab under Publications go to the Interactive Data Tables Select National Income and Product Accounts From Table

Go to the BEA website www.bea.gov. On the left tab under Publications, go to the Interactive Data Tables. Select National Income and Product Accounts. From Table 1.1.6 and 1.1.7 examine allfour components of GDP (C, I, G, and Xn).Which of thesefour components of AD declined the most during the 2007 and 2009 recession? Do you think an increase in government's spending (G) can boost the Aggregate Demand (AD) in a recession? Analyze why the economy may operate below full-employment GDP in the short run. How can the multiplier have a negative effect? What is the relationship between the multiplier and the marginal propensities? Explain.

Apr 30 2020 View more View Less

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