Growth predictions changed
I found a link on the Heavy Lifting site that took me to a yahoo site which had an article addressing the issue of retail sales going down and therefore causing the economists to lower their predictions for growth during the second quarter. This closely relates to the topic of discussion in which shift variables are causing the curves on the AS-AD method graph to shift. For example, these shifts affected the Treasury bond prices, which had initially increased and then decreased. One economist points his finger at the gas prices and the idea that the “bulk of tax refunds may have already been spent.” Does this mean consumers are not spending as much money? Should we be worried?