Aggregate Supply/Demand And Loanable Funds Model Say there is an annual event that brings a state over 40 million dollars on the week that it runs, bringing tourists from all over the world to the...

Aggregate Supply/Demand And Loanable

Funds Model

Say there is an annual event that

brings a state over 40 million dollars on the week that it runs, bringing

tourists from all over the world to the event and millions of dollars from

television coverage

What is the expended change to gross

product and the price level likely to be in the short run? How can this be

illustrated by an aggregate demand and supply model?

If I assume that the expenditure by

the government on this event increases the government’s deficit what will be

the likely effect on private sector savings and investment using the loanable

funds model?