Assumption: No government No foreign trade There are only two economic actors in the market: Households and firms Y (Actual Output) Unplanned Stocks C = 10+0.5Y AD Y-AD Output Step 1 100 40 Step 2 10 Step 3 10 Step 4 10 What kind of changes do the falling investment lead to on unplanned stocks and output?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter31: The Impacts Of Government Borrowing
Section: Chapter Questions
Problem 1SCQ: In a country, private savings equals 600, the government budget surplus equals 200, and the trade...
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Assumption: No government
No foreign trade
There are only two economic actors in the market: Households and firms
Unplanned
Stocks
Y (Actual Output)
C = 10+0.5Y AD
Y-AD
Output
Step 1
100
40
Step 2
10
Step 3
10
Step 4
10
What kind of changes do the falling investment lead to on unplanned stocks and output?
Transcribed Image Text:Assumption: No government No foreign trade There are only two economic actors in the market: Households and firms Unplanned Stocks Y (Actual Output) C = 10+0.5Y AD Y-AD Output Step 1 100 40 Step 2 10 Step 3 10 Step 4 10 What kind of changes do the falling investment lead to on unplanned stocks and output?
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