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1.a) Think about your household. Is the concept of consumption function applicable to the behavior of your household? Why or why not? Discuss briefly. b)
1.a) Think about your household. Is the concept of consumption function applicable to the behavior of your household? Why or why not? Discuss briefly.
b) How can you calculate the marginal propensity to save (MPS) of your household?
2.Can a progressive income tax negatively affect economic growth (real GDP)? Why or why not? Discuss briefly.
3.Can contractionary fiscal policy be used to tackle the problem of high price level in the economy? Discuss using the AD-AS model (diagram).
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