Life expectancy begins to drift downwards worldwide as a result of climate change accompanied by the spread of new diseases. This means that in the future, households will expect to have shorter periods of retirement to save for. According to the Spending Allocation Model, which of the following will occur as a result? Equilibrium R" will rise. The S/Y curve will shift to the right. O Equilibrium R" will fall. The equilibrium Investment share of potential GDP will rise. O The S/Y' curve will shift to the left. O The I/Y' + X/Y* curve will shift to the left. O The equilibrium Investment share of potential GDP will fall. The I/Y + X/Y curve will shift to the right.
Life expectancy begins to drift downwards worldwide as a result of climate change accompanied by the spread of new diseases. This means that in the future, households will expect to have shorter periods of retirement to save for. According to the Spending Allocation Model, which of the following will occur as a result? Equilibrium R" will rise. The S/Y curve will shift to the right. O Equilibrium R" will fall. The equilibrium Investment share of potential GDP will rise. O The S/Y' curve will shift to the left. O The I/Y' + X/Y* curve will shift to the left. O The equilibrium Investment share of potential GDP will fall. The I/Y + X/Y curve will shift to the right.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Life expectancy begins to drift downwards worldwide as a result of climate change accompanied
by the spread of new diseases. This means that in the future, households will expect to have
shorter periods of retirement to save for. According to the Spending Allocation Model, which of
the following will occur as a result?
Equilibrium R" will rise.
The S/Y* curve will shift to the right.
Equilibrium R" will fall.
O The equilibrium Investment share of potential GDP will rise.
O The S/Y' curve will shift to the left.
O The I/Y' + X/Y' curve will shift to the left.
O The equilibrium Investment share of potential GDP will fal.
O The I/Y + X/Y* curve will shift to the right.
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