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Cyclical Instability
Purpose: The purpose of this assignment is to, in small groups, apply research-writing skills to the course text in order to test your knowledge of the assigned chapters.
April 12, 2015Overcoming Laissez-Faire Leadership
April 12, 2015Cyclical Instability
Requirements: Arial 11’ more than 720 words.
1. Why do rich people have a higher marginal propensity to save than poor people?
2. How do households dissave? Where do they get the money to finance their extra consumption? Can everyone dissave at the same time?
3. How might a “perfect” macro equilibrium (Figure 9.10a) be affected by (a) a stock market crash; (b) the death of a president; (c) a recession in Canada; (d) a spike in oil prices?
4. How did the decline in U.S. home prices in 2006-8 affect aggregate demand?
Cyclical Instability
Requirements: Arial 11’ more than 720 words.
1. Why do rich people have a higher marginal propensity to save than poor people?
2. How do households dissave? Where do they get the money to finance their extra consumption? Can everyone dissave at the same time?
3. How might a “perfect” macro equilibrium (Figure 9.10a) be affected by (a) a stock market crash; (b) the death of a president; (c) a recession in Canada; (d) a spike in oil prices?
4. How did the decline in U.S. home prices in 2006-8 affect aggregate demand?
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Midterm quiz, week 3
Cyclical Instability
Requirements: Arial 11’ more than 720 words.
1. Why do rich people have a higher marginal propensity to save than poor people?
2. How do households dissave? Where do they get the money to finance their extra consumption? Can everyone dissave at the same time?
3. How might a “perfect” macro equilibrium (Figure 9.10a) be affected by (a) a stock market crash; (b) the death of a president; (c) a recession in Canada; (d) a spike in oil prices?
4. How did the decline in U.S. home prices in 2006-8 affect aggregate demand?
Click here to place an order for a similar paper and have exceptional work done by our team and get A+results
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