Macroeconomics (aggregate expenditure diagram, short-run) ONLY 3 Questio

**Use table in files** **Left some notes as well**
Consider the short-run macro model (chapter 11). For question 8, suppose that households decide to spend a larger proportion of their income.

a. In the table in problem 1 (p. 323), which column of data would be affected?
b. Draw an aggregate expenditure diagram and show how the initial decrease in savings (= increase in consumption) can be measured in that diagram.
c. Use your aggregate expenditure diagram to show how an economy that is initially in short-run equilibrium will respond to a decrease in thriftiness.

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