Suppose, in 2020, consumption and investment in France decreased by 11 billion Euros but government's expenditure inbreededby 6 billion. Assume the price level was constant, the Multiplier = 2 and the economy was at full employment. As a result, explain what happened in short, support your answer by using graphical representation of AD/AS model.

What is the relationship between income, consumption, investment, government expenditure, exports and imports in equilibrium?

In order to stabilize the situation in country, French Government decided to increase government expenditure by additional 3 billion Euros without changing the tax rate.What you can say about this policy?

Should it apply quantitative easing or buying governments bonds or change the tax rate? What is the difference between these three tools?