Americans are becoming more cautious with their household, Business Economics

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Americans are becoming more cautious with their household

Assume that the US macroeconomic equilibrium is equal to the potential GDP.

Americans are becoming more cautious with their household spending due to the uncertainty of the presidency of Donald Trump. Using AD-AS model, explain carefully the immediate and long term effects of the event towards the economy. Draw the appropriate AD-AS diagram to support your explanation.

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Business Economics: Americans are becoming more cautious with their household

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