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Draw a Saving-Investment Diagram to Show How Each of the Following

question 36

Essay

Draw a saving-investment diagram to show how each of the following changes shifts the IS curve.
(a)Future income rises.
(b)The future marginal productivity of capital increases.
(c)Government purchases decrease temporarily.
(d)The effective corporate tax rate increases.


Definitions:

Profiling

The act of creating a detailed description of someone based on certain characteristics, which can be used in various contexts including law enforcement and marketing.

Social Awareness

The recognition and understanding of the dynamics and complexities of social relationships, norms, and issues.

Ethnomethodology

Is the study of how people make sense of what others do and say by adhering to pre-existing norms.

Harold Garfinkel

A sociologist known for his work in ethnomethodology, emphasizing the ways people make sense of their everyday social interactions.

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