50 word response to question

Consumer and investor optimism and pessimism matter a great deal in theeconomy. Suppose that survey measures of consumer confidence indicate a waveof pessimism is sweeping the country. If policymakers do nothing, what willhappen to aggregate demand? What should the Federal Reserve do if it wantsto stabilize aggregate demand? If the Federal Reserve does nothing, what doyou think might Congress (fiscal policy) do to stabilize aggregate demand?Why do you think consumer and investor confidence affect AD and hence theeconomy? One of the most debated areas in economics is balancing the budget. Themajor contention is on the timing of the policy. If the government were tooperate under a strict balanced-budget rule, what do you think would it haveto do in a recession? Should it follow the strict rule? Would that make therecession more or less severe? Why?