The Paradox of Thrift Does Not Exist in the Long

question 107

Multiple Choice

The paradox of thrift does 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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Definitions:

Focused Freewriting

A writing strategy where the writer writes non-stop for a set period of time but stays focused on a particular topic or idea.

Brainstorming

A group creativity technique designed to generate a large number of ideas for the solution to a problem.

Jotting Down

The act of quickly writing something down to remember or refer to later, often informally.

Clustering

A process in data analysis where a set of objects are grouped together so that objects in the same group are more similar to each other than to those in other groups.