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Think about what you learned in Chapters 29-30 in your textbook. Write a new thread in which you respond to the following prompts: How does
Think about what you learned in Chapters 29-30 in your textbook. Write a new thread in which you respond to the following prompts: How does consumption spending affect aggregate expenditures and output over the business cycle? How does investment spending affect aggregate expenditures and output over the business cycle? Which is more responsible for volatility - consumption or investment spending or both? Explain your choice. How do government actions affect consumption and investment? Given this knowledge, how will YOUR consumption spending habits change now that you know that we are facing the downward path of the business cycle? If so, how? If not, why not
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