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This document outlines an economics problem set examining the macroeconomic effects of consumer pessimism versus investor pessimism. It asks students to: 1) Explain how consumer pessimism would affect aggregate demand and equilibrium in both the long and short run. 2) Compare the effects of consumer versus investor pessimism on prices and quantities in various markets, as well as required policy responses. The appendix provides details on how investor pessimism reduces investment spending and aggregate de

Author

Ho Chi Sin

Language

EN