You have been hired as a consultant by your mayor to evaluate the increase in aggregate demand in the city where you live. Describe to the mayor one (1) aggregate demand and supply factor that would have the greatest impact on the economy of your city.
- Explain how a decrease in aggregate demand affects each of the following variables: inflation, unemployment rate, production, employment rate, and consumer confidence. Provide concrete examples to support for your response.
Just 2 paragraphs.
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