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What Is Intertemporal Substitution? How Does Intertemporal Substitution Affect the Impact

question 45

Essay

What is intertemporal substitution? How does intertemporal substitution affect the impact of a negative real shock on an economy?


Definitions:

Graded Stream

A stream in equilibrium, showing a balance between its capacity to transport sediment and the amount of sediment supplied to it, thus with no overall erosion or deposition of sediment.

Meander

A sinuous curve or bend in the course of a stream or river.

Migration

The movement of organisms from one area to another, often seasonally or as part of their lifecycle.

Alluvial Fan

A cone-shaped deposit of sediment crossed and built by stream flows from mountains.

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