Explain how a decrease in aggregate demand affects each of the followingvariables: inflation, unemployment rate, production, employment rate, andconsumer confidence. Provide concrete examples to support for your response. You will find several helpful articles in the Instructor Insights.Determine what fiscal policy measure has a more direct impact to the economy, anincrease in government spending or an equal decrease in taxes if consumerconfidence is lower than the previous month. Explain your reasoning.Choose a time frame whether it be current or historical, describe theeconomic situation and explain the appropriate fiscal policy that should be orwas used to help stabilize the economy. Provide support for your response.
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