Economics

a) Discuss the determinants of aggregate consumption and aggregate investment. Base on historical Australian data,

which tends to fluctuate more - investment or consumption?

You must also answer why it does this, Data must be sourced.

(500 Word count) b) Suppose bad economic stats led investors to be more negative about future prospects on earnings on investment projects. With the help of diagrams, review the impact of this change on aggregate consumption and income. Word limit 600

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