1.16. In 1992, as President George H. W. Bush was running

(

unsuccessfully) for reelection, the economy slowed down;

then in late 1993, after President Bill Clinton’s election, the economy picked up steam. (LO26W-3)

a. Demonstrate graphically with the multiplier model a shift in the AE curve that would have caused the slowdown.

b. Demonstrate graphically with the multiplier model a shift in the AE curve that would have caused the improvement.