Millennials Are Starting to Spend More

Millennials, who spend an average of $85 a day, are expected to spend at a higher rate in the next 15 years. Only 37 percent of Americans report higher spending today than a year ago, while 42 percent of millennials say they are spending more. Millennials are spending more on rent or mortgages and leisure activities than they were spending a year ago.

Source: Business Journal, May 25, 2016

Explain the effect of a rise in expenditure by millenials on real GDP and the price level in the short run.

Describe the macroeconomic equilibrium after the change in spending by millenials:

If the economy had been operating below full-employment equilibrium,

If the economy had been operating at a full-employment equilibrium, and

Explain and draw a graph to illustrate how the economy adjusts in the two situations described in parts a and b.

Please explain it with details