Discussion 8 Essay Example | Topics and Well Written Essays - 250 words - 3

Discussion 8 - Essay Examplehigher(prenominal) education tax credit of up to $2500, $25 change magnitude in weekly unemployment benefit and $7 billion worth of broadband deployments in the rural atomic number 18as (Bureau of Economic Analysis report, 2009).Demand refers to how much buyers are willing and able to buy whereas supply refers to how much producers are willing and able to deliver to the market. Buyers use their disposable income for investment and consumption. Disposable income is the amount that is left wing after income is taxed. The tax credit provided for by the stimulus package reduces the taxable income leading to a higher disposable income. Due to the increased disposable income, buyers increase their substance demand for goods and services and investments such as homes, cars, technology, good health and education. To meet the increased demand, producers increase production of the goods in question, hence increased aggregate supply. Consequently, the market equi librium is met. For the ten years there will be observed increase in aggregate demand and supply reaching higher equilibrium points which translates to economic