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QD = 65000 – 10000P
QS = - 35000 + 15000P
a) Compute the following table
Price QS QD Surplus pr Shortage
a) What is the equilibrium price?
• Interest rates, public savings, private savings, national savings, investment, net foreign investment, supply of currency, the exchange rate and the level of net exports.
Event: There is a decline in consumer confidence in the economy
Note: Ignore the detail and politics of this event. Focus only on analysing the market adjustment in each case. Fully explain all the transmission mechanism.
Hint: Provide possible examples or case studies.