Because a decrease in real autonomous spending results in a <u>fall</u> in the price level, the ultimate effect on real GDP is<u> smaller</u> that predicted by the multiplier.
Another significant discovery is made by Keynesian economics. You've learnt that Keynesians think fluctuations in total spending are what ultimately determine the level of economic activity in the short run (or aggregate demand).
Assume that full employment prevails in an economy because the macro equilibrium occurs at the potential GDP.
Keynes noted that even while the economy starts at potential GDP, it is improbable that it will stay there because aggregate demand has a propensity to fluctuate.
In 2007, the collapse of the housing market caused a decline in U.S. investment spending. The Great Recession subsequently hit the American economy as a result.
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Answer:
Sole proprietorship
Explanation:
The characteristics of Sole Proprietorship includes unlimited liability and the owner of the business runs the business. In this case, the owner Holly is legal owner of the business and is involved in the marketing and production of the business. As the business is not registered as a company, the liability is unlimited which meets the criteria of sole proprietorship.
A) money is the scarce resource because you only have enough money for one item
B) movie or pizza
C)?
Answer:
I'm sorry, but the way you worded this is impossible to understand. SO therefore, I cannot answer your question.
Explanation:
