[16 points] Suppose that consumer and investor confidence fall such that Consumption and
Investment decrease. The AD curve is now shown in columns (1) and (4). i. [2 points] Graph this
AD curve on the same figure you drew in part la and label it ADb. ii. [2 points] What is the
equilibrium price level? iii. [2 points] What is the equilibrium level of output? iv. [2 points] What is
the equilibrium unemployment rate? v. [2 points] What is the rate of cyclical unemployment? vi. [2
points] As the economy has moved from a to b, what would we call this situation?Table 1: 1.
16 points Suppose that consumer and investor confidence fa.pdf
1. [16 points] Suppose that consumer and investor confidence fall such that Consumption and
Investment decrease. The AD curve is now shown in columns (1) and (4). i. [2 points] Graph this
AD curve on the same figure you drew in part la and label it ADb. ii. [2 points] What is the
equilibrium price level? iii. [2 points] What is the equilibrium level of output? iv. [2 points] What is
the equilibrium unemployment rate? v. [2 points] What is the rate of cyclical unemployment? vi. [2
points] As the economy has moved from a to b, what would we call this situation?Table 1: 1
![[16 points] Suppose that consumer and investor confidence fall such that Consumption and
Investment decrease. The AD curve is now shown in columns (1) and (4). i. [2 points] Graph this
AD curve on the same figure you drew in part la and label it ADb. ii. [2 points] What is the
equilibrium price level? iii. [2 points] What is the equilibrium level of output? iv. [2 points] What is
the equilibrium unemployment rate? v. [2 points] What is the rate of cyclical unemployment? vi. [2
points] As the economy has moved from a to b, what would we call this situation?Table 1: 1](https://image.slidesharecdn.com/16pointssupposethatconsumerandinvestorconfidencefa-230318130343-0f10c5e9/85/16-points-Suppose-that-consumer-and-investor-confidence-fa-pdf-1-320.jpg)
