Define what is happening in the economy when a country is in an expansionary mode, a recession, and a depression. Which economic indicators do we monitor to ascertain where the economy is in the business cycle. Part 2: As an economic advisor to the president, suggest 4 ways to increase aggregate demand using the following economic concepts. Make sure you answer in the context of the equation for GDP, which is AD (Real GDP) = C (Consumption) + I (Investment) + G (Government Spending) + (E (Exports) - IM (Imports). All creative ideas are welcome! •The marginal propensity to consume •Impact of marginal propensity to the save on investment. •Fiscal policy, which focuses on policies related to government spending and taxation •The multiplier 400 to 600 words
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