Closed Economy
1.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? 2. Use the following data for a closed economy to calculate the amounts listed below. Explain and show your work in your answers: Y = $12 trillion C = $8 trillion G = $2 trillion SPublic = $-0.5 trillion T = $2 trillion A. Investment spending B. Private saving C. Transfer payments 3. 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: Ford F-150 trucks McDonalds Big Macs Whirlpool washing machines Huggies diapers Boeing passenger aircraft You are required to explain your answers for each of the products listed above. Make sure you reference your data sources and any academic articles used to 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. Please note you are required to provide charts, graphs, and explanation of answers for it to be considered an economic analysis.
