Q. Elucidate what could be done to encourage people to spend more so as to increase aggregate demand and invariably, create employment possibilities?
Q. One bag of flour is sold for $1.50 to a bakery, which uses the flour to bake bread that is sold for $4.00 to consumers. A second bag of flour is sold to a consumer in a grocery store for $2.00. Taking these three transactions into account, what is the effect on GDP?