In the full employment model and government spending, investment, and tax levels O taxes, government spending, and interest rates. O technology, capital stock, and employment levels O technology, taxes, and investment are the only factors that affect output (i.e., re

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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In the full employment model
O government spending, investment, and tax levels
taxes, government spending, and interest rates.
and
technology, capital stock, and employment levels
technology, taxes, and investment
Question 12
are the only factors that affect output (i.e., re
In the FEM, suppose people get pessimistic about the future and begin to save more today this will
O increase real GDP because there is more money in the capital market
increase the labor demand curve because more money is spent on labor
shift the savings curve to the right and lower real interest rates
shift the savings curve to the left and raise real interest rates
Transcribed Image Text:In the full employment model O government spending, investment, and tax levels taxes, government spending, and interest rates. and technology, capital stock, and employment levels technology, taxes, and investment Question 12 are the only factors that affect output (i.e., re In the FEM, suppose people get pessimistic about the future and begin to save more today this will O increase real GDP because there is more money in the capital market increase the labor demand curve because more money is spent on labor shift the savings curve to the right and lower real interest rates shift the savings curve to the left and raise real interest rates
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