Why Does the "Paradox of Thrift" Not Exist in the Long

question 68

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.

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