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.