Suppose the C/Y Line Shifts to the Right Because of a Change

question 144

Essay

Suppose the C/Y line shifts to the right because of a change in attitude about the future. At the same time, because of political pressure, the government share of GDP declines, with the result that the interest rate stays constant.
(A) If the investment share is the anly thing that affects prowth in the system, what wril happen to growth?
(B) If the cansumption share increased by 5 percent what must heve heppened to the goverrment share?
(C) Suppose that when the C/rline shifted to the right and the government cut spending the interest rate actually fell. What happened to each of the fau shares in this case?

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Definitions:

Work Unit Activities

Tasks and responsibilities assigned to a specific team or department within an organization, contributing to its overall objectives.

Recognizing

The act of acknowledging and appreciating the achievements or contributions of individuals, typically used as a motivational tool in leadership.

Desirable Behavior

Actions or conduct that are considered favorable, appropriate, or beneficial in a given social or organizational context.

Task Commitment

The level of dedication and effort an individual or team devotes to completing a specified task or assignment.