Suppose that concerned about the US deficit and debt, Congress and the President decide to lower expenditures, according AS-AD model,

a.GDP would decrease.

b.Suppose the decrease in expenditure is $250 billion dollars and that consumers normally save $0.15 out of every extra dollar earned,consequently, we would expect AD to shift _left_ (right or left) by $ ____________.

1.Which group receives the largest share of US Federal government expenditures? The young, the old, the poor, farmers, children? The old

2.Which component of the US Federal Government budget has increased the most since 1962?

Mandatory Spending