Explain the effect of an increase in consumer income on the demand for a good. In your own words, explain the logic of the income-expenditure model

Our Assignment 2 relates to chapters 4 (Demand, Supply, and Markets), 9 (Aggregate Expemditure and Aggregate Demand) and 10 (Aggregate Supply) respectively.. You will be answerring questions related to the concepts of economic fluctuations and aggregate demand and supply.

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Your assignment is worth 6 pts, and each of the questions must have at least a half of page of writing

A reference page with at least two references from the FNU Library (LIRN / Library and Information Resources Network) specifically Pro-Quest, and textbook are required, you must also reference your in-text.

Your Library: User ID > 24439

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In addition your answers must prescribe to APA format.. You must submit a cover page, each question in a page by itself, and your references page must be also in a page by itself. And, please do not forget to reference your in-text. Lastly your assignment must be submitted via "Safeassign" in order to obtain your max points your work must be original in at least 70%.

Answer the following questions:

– Explain the effect of an increase in consumer income on the demand for a good.

– In your own words, explain the logic of the income-expenditure model. What determines the amount of real GDP demanded?

– Define the economy’s potential output. What factors help determine potential output?

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