Business, 26.09.2019 17:10 Tariah5970

In chapter 3, when considering the short-term determinant of aggregate expenditure and equilibrium output, we encountered the paradox of savings. increasing the savings rate does not increase the total volume of savings. instead, y, c, and i all fall – and presumably when y falls so does employment, n. in this chapter, we make the simplifying assumption that increasing the savings rate s will not cause any change in n. first, briefly explain the paradox of savings in your own words. (you may also illustrate with equations or graphs if you wish to.) do you find the paradox of savings persuasive as a description of the short term behavior of the real economy? then think about the way in which many short-run periods in succession add up the long run. do you consider the simplifying assumption that s will not cause a change in n reasonable for the long run? or do you think short run fluctuations can have long run consequences? explain your position. (this is a thinking question, not a right answer/wrong answer question. i don't require you to hold a particular opinion, but i do want to see you use the vocabulary and concepts we've studied appropriately.)

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 12:50, axelsanchez7710

You are working on a bid to build two city parks a year for the next three years. this project requires the purchase of $249,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the three-year project life. ignore bonus depreciation. the equipment can be sold at the end of the project for $115,000. you will also need $18.000 in net working capital for the duration of the project. the fixed costs will be $37000 a year and the variable costs will be $148,000 per park. your required rate of return is 14 percent and your tax rate is 21 percent. what is the minimal amount you should bid per park? (round your answer to the nearest $100) (a) $214,300 (b) $214,100 (c) $212,500 (d) $208,200 (e) $208,400

Answers: 3

continue

Business, 22.06.2019 15:30, emilylizbeth12334

For a firm that uses the weighted average method of process costing, which of the following must be true? (a) physical units can be greater than or less than equivalent units. (b) physical units must be equal to equivalent units. (c) equivalent units must be greater than or equal to physical units. (d) physical units must be greater than or equal to equivalent units.

Answers: 1

continue

Business, 22.06.2019 16:00, anonymous1813

Winners of the georgia lotto drawing are given the choice of receiving the winning amount divided equally over 2121 years or as a lump-sum cash option amount. the cash option amount is determined by discounting the annual winning payment at 88% over 2121 years. this week the lottery is worth $1616 million to a single winner. what would the cash option payout be?

Answers: 3

continue

Business, 22.06.2019 21:30, mydoggy152

Which of the following best explains the purpose of protectionist trade policies such as tariffs and subsidies? a. they make sure that governments have enough money to pay for fiscal policies. b. they give foreign competitors access to new markets around the world. c. they allow producers to sell their products more cheaply than foreign competitors. d. they enable producers to purchase productive resources from everywhere in the world.

Answers: 1

continue

You know the right answer?

In chapter 3, when considering the short-term determinant of aggregate expenditure and equilibrium o...