"Because it is good for individual households to increase their saving in the short run, it is therefore good for a nation's economy in the short run if all households increase their saving." Thi statement is an example of: O a. the fallacy of composition. O b. the post hoc fallacy. O c. the ceteris paribus assumption. O d. marginal analysis.
"Because it is good for individual households to increase their saving in the short run, it is therefore good for a nation's economy in the short run if all households increase their saving." Thi statement is an example of: O a. the fallacy of composition. O b. the post hoc fallacy. O c. the ceteris paribus assumption. O d. marginal analysis.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:"Because it is good for individual households to increase their saving in the short run, it is therefore good for a nation's economy in the short run if all households increase their saving." This
statement is an example of:
O a. the fallacy of composition.
O b. the post hoc fallacy.
O c. the ceteris paribus assumption.
O d.marginal analysis.
Expert Solution
Introduction
Here we are talking about the short run where the economic growth is demand driven. And the demand includes : private consumption demand, private investment demand, government expenditure and the net foreign demand.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education