Accounting Assignment
Answer the following questions:
- Explain the effect of an increase in consumer income on the demand for a good.
- In your own words, explain the logic of the income-expenditure model. What determines the amount of real GDP demanded?
- Define the economy's potential output. What factors help determine potential output?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.