The Paradox of Thrift Does Not Exist in the Long

question 107

Multiple Choice

The paradox of thrift does not exist in the long run because

• A)not everyone increases saving in the long run.
• B)aggregate supply has an impact on real GDP only in the short run.
• C)everyone increases consumption in the long run.
• D)changes in aggregate demand have no impact on real GDP in the long run.
• E)potential output is determined by changes in the price level.

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Definitions:

Self-Representation

How individuals present and perceive themselves, often influenced by social and personal factors.

Self-Esteem

The subjective evaluation or perception of one's own worth, encompassing beliefs and emotions, including pride and shame.

Self-Regulation

The ability to control one's emotions, thoughts, and behaviors in accordance with long-term goals, often crucial for success and mental health.

Social Skills

Discrete, observable behaviors such as making eye contact, using appropriate language, asking appropriate questions, and so forth, which promote effective social interaction and which are part of the broader construct of social competence.