An increase in productivity shifts the Aggregate Supply curve to the right. According to the AD-AS model, tax cuts should lead to an increase in the price level.
Total wealth is the sum of financial wealth and housing wealth.
Lowering the retirement age increases total wealth because the present value of financial wealth increases while housing wealth and human wealth remain unchanged. For a given change in annual income, consumption should increase more the more permanent people believe the change to be. State the equilibrium condition for the goods market. Solve for national income as a function of the interest rate. Solve for equilibrium in financial markets.