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Below is a diagram of the loanable funds market. Explain two examples of things that might occur which would cause the supply curve to shift from S1 to S2.
Use the following data for a closed economy to calculate the amounts listed below. Explain and show your work in your answers:
Y = $19 trillion
C = $10 trillion
G = $4 trillion
SPublic = $-0.5 trillion
T = $3 trillion
Investment spending
Private saving
Transfer payments
Briefly explain whether production of each of the following goods is likely to fluctuate more or less than real GDP does during the business cycle:
Tesla Model 300
McDonald’s Big Macs
Whirlpool Refrigerator
Pampers Diapers
You are required to explain your answers for each of the products listed above. Ensure you reference your data sources and any academic articles that support your answers.
Hint: Graphing the answers may make it visually easier to determine your answer. Please include all graphs, charts, and diagrams in your assignment.
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