What Is the Difference Between a Movement Along a Curve

question 60

Essay

What is the difference between a movement along a curve and a shift of a curve? What is the simplest way to tell when it is necessary to shift a curve?

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Definitions:

Present Consumption

The use of goods and services for immediate satisfaction or needs, as opposed to saving for future use.

Loanable Funds

The supply of available capital in the financial markets for borrowing, which can be used for investment purposes by individuals and businesses.

Future Consumption

The use of goods or services at a later date, often facilitated by saving or investing in the present.

Productivity of Capital Goods

The effectiveness with which capital goods, such as machinery and equipment, produce goods or services.