Question

In 1939, with the u.s. economy not yet fully recovered from the great depression, president roosevelt proclaimed that thanksgiving would fall a week earlier than usual so that the shopping period before christmas would be longer. explain what president roosevelt might have been trying to do, using the model of aggregate demand and aggregate supply

Answer 1

Roosevelt was trying to make people spend more of their money. The aggregate supply of producty enters and makes an increase because of the prolonged days of Christmas shopping. The result would be a downward slope for aggregate demand. On the onset people would spend more be on coming days, they would spend less.