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.

---

Definitions:

Smokers

Individuals who habitually engage in the act of inhaling and exhaling the smoke of tobacco or a similar substance.

S Data

Self-report data, where information is provided directly by individuals about themselves, often in the context of research or assessment.

Mood-Rating Questionnaire

A self-assessment tool used to evaluate an individual's current emotional state, typically in research or clinical settings.