Identify whether the following events would increase or decr…

Identify whether the following events would increase or decrease saving or investment. Workers get notices of an increase in pay (minimum wage) to take effect in January. The [si1] [change1]. Businesses notice an improvement in the economy that is expected to continue into the next year. The [si2] [change2]. Chaffey College learns of the benefits of installing solar panels in the parking lots of all three campuses. The [si3] [change3]. You were planning to sell your rare, million dollar, 1968 Ford Mustang car but it was damaged in a texting and driving accident. The [si4] [change4]. Colleges and universities notice that students use their mobile devices (phones, tablets, laptops) for learning, completing assignments, enrolling in classes. The [si5] [change5].

Suppose the economy is at potential GDP and the government i…

Suppose the economy is at potential GDP and the government introduces contractionary fiscal policy. Show the impact on the macro economy using an AD/AS graph.    Contractionary fiscal policy will cause the AD function to [ad]. Impact on the economy real GDP [rgdp] Prices (inflation) [price] unemployment [unemp]