Q. Assume that an increase in consumer confidence raises consumers' expectations about their future income also thus increases the amount they want to consume today. This might be interpreted as an upward shift in the consumption function. How does this shift affect investment also the interest rate?

Q. Illustrates what are the key points in the short-run construction function that delineate the 3 stages of construction. Elucidate the relationship among the law of diminishing returns also the 3 stages of construction.