Multiple Choice
Why does the "paradox of thrift" not exist in the long run? Because
A) not everyone increases saving in the long run.
B) aggregate supply has an impact on real GDP only in the short run.
C) everyone increases consumption in the long run.
D) changes in aggregate demand have no impact on real GDP in the long run.
E) potential output is determined by changes in the price level.
Correct Answer:

Verified
Correct Answer:
Verified
Q63: Consider an economy with a relatively steep
Q64: Consider an AD/AS model in long-run equilibrium.An
Q65: Consider the AD/AS model.In the long run,after
Q66: Net tax revenues that rise with national
Q67: Suppose the government had made a decision
Q69: In the long run,aggregate demand is _
Q70: Consider the global recession that began in
Q71: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7713/.jpg" alt=" FIGURE 24-1 Refer
Q72: Which of the following statements about fiscal
Q73: An expansionary fiscal policy that takes the