In the Basic AD/AS Macro Model, the "Paradox of Thrift

question 20

Multiple Choice

In the basic AD/AS macro model, the "paradox of thrift" is only a short- run phenomenon because

• A)consumers base their consumption expenditures only on their lifetime income.
• B)the marginal propensity to consume is fixed in the long run.
• C)savings are transformed into expenditures in the long run.
• D)in the long run output is determined by potential output.
• E)consumers exhibit cyclical consumption behaviour.

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Definitions:

CPT

Abbreviation for Current Procedural Terminology, a medical code set used to describe medical, surgical, and diagnostic services and procedures.

Supplementary Classifications

Additional categories or groupings that complement the primary system of classification, often used to provide more detailed information.

V-codes

Diagnostic codes used in health care to indicate factors that influence health status and contact with health services, which are not due to a disease or injury.

E-codes

E-codes are a classification system used in health informatics for coding external causes of injuries, poisonings, and accidents.