Hello would someone please help me solve these problems? I don't even know what equation I am supposed to be using or really understand these questions:

1. If AS decreases by $40 billion for every 1 percentage point increase in tax rates, by how much will AS decrease when the tax rate is raised from 32% to 34%? 2. If AD shifts by$40 for every $1,000 change in consumer wealth, by how much will AD increase when the stock market rises in value by$300 billion?

If someone could please give me a thorough explanation as well, I am very confused.
Thank you!!!

Originally Posted by Cheryl89
Hello would someone please help me solve these problems? I don't even know what equation I am supposed to be using or really understand these questions:

1. If AS decreases by \$40 billion for every 1 percentage point increase in tax rates, by how much will AS decrease when the tax rate is raised from 32% to 34%? 2. If AD shifts by \$40 for every \$1,000 change in consumer wealth, by how much will AD increase when the stock market rises in value by \$300 billion?

If someone could please give me a thorough explanation as well, I am very confused.
Thank you!!!
reposted with \$signs fixed 3. ## Re: Please Help with My Econ- Aggregate Supply and Demand Originally Posted by romsek reposted with \$ signs fixed
1) how many percentage points do taxes increase when going from a tax rate of 32% to 34% ? How much does the AS decrease per point? So what is the total decrease in AS?

2) How much does consumer wealth increase when the stock market rises by 300 billion? How much is that in increments of \$1000? How much does the AD shift per \$1000? So what is the total shift in the AD?