Suppose that an economy is operating at equilibrium and for some reason households begin to save a smaller fraction of their income. How will this affect equilibrium output in the future when planned investment rises and falls?
Suppose that an economy is operating at equilibrium and for some reason households begin to save a smaller fraction of their income. How will this affect equilibrium output in the future when planned investment rises and falls?
Chapter23: The Aggregate Expenditure Model
Section: Chapter Questions
Problem 5P
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Suppose that an economy is operating at equilibrium and for some reason households begin to save a smaller fraction of their income. How will this affect equilibrium output in the future when planned investment rises and falls?
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