As you have learned consumer expectations are a major driver of the short run path of the economy. Consumer spending account fors about 70% of GDP and consumer confidence is a major factor in shifting Aggregate Demand.
Describe how your expectations about the economy have changed because of Covid-19.
How did you alter your spending patterns during this pandemic? Do you expect consumer confidence and business expectations to improve in the months ahead?
Utilizing the equation GDP= C+I+G+from Chapter 6 what is your forecast for which way the AD curve will shift between now and the end of 2021? Why?
