Black Friday Shopping

December 3, 2019

Black Friday broke shopping records.Milk on wooden plate with cows on the background

Questions
  1. Compare Black Friday shopping in 2019 with Black Friday shopping in 2018.
  2. Where is Black Friday shopping recorded in the National Income and Product accounts?

Retail sales are expected to grow in 2019.

  1. If this increase in consumption expenditure is an increase in induced expenditure, describe the change in the consumption function. If this increase in consumption expenditure is an increase in autonomous expenditure, describe the change in the consumption function.
  2. If disposable income increased but by less than the increase in consumption function, describe the consumption function. Does this mean that the MPC is greater than 1?
  3. Draw a graph to illustrate your answer to #3 and #4.

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