Answer:
The correct answer that fills the gap is: Fall.
Explanation:
The paradox of saving or paradox of frugality or paradox of austerity suggests, according to the Keynesian economic aspect, that if all the inhabitants try to save more, that is to say to dedicate to saving a greater percentage of their income, the aggregate demand will fall, the production will fall and the total population savings will be equal or lower.
The explanation of the paradox is because the total income of the population (Y) is equal to the sum of the income of its individuals. Since personal income can be used for consumption or savings, and that consumption forms an essential part of aggregate demand - which finances global income through income and wages - if the percentage of savings increases, logically consumption will decrease , so that aggregate demand will decrease further and, consequently, global income, which will cause personal income to fall. When personal income or income falls, each individual will have to dedicate a greater percentage of their income to save in order to continue saving the same in absolute terms. This will further reduce their consumption (already reduced by the fall in income) so that income will be even more reduced and so on to the point that some or many must use their savings in order to solve the decrease in income.
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NOTE: If you need to extend the explanation given, you can make a comment or add a new question. I will be very pleased to help you.
A written warning. Many businesses "write a person up" for inappropriate behavior which can lead to dismissal if frequent.
Answer:
C) producers to supply more and consumers to buy less.
Explanation:
The typical supply curve is upward-sloping (higher price leads to higer quantity supplied) and the typical demand curve is downward sloping (higher price lower quantity demanded).
Price is a measure of how much one good can be exchanged for other things. Production incurred cost (tend to rise as more resources become harder to obtain) so to supply more suppliers will demand higher price. Purchasing higher price good means consumers have less money (less of other goods can be bought) consumer will buy less good at higher price.
