Consider the Following Multiplier Model Diagram

question 38

Essay

Consider the following multiplier model diagram:
For each of the following,draw a picture to show what would happen to the equilibrium level of income in the economy.
(a)Consumers,in their delight over the Dow Jones Industrial Average reaching 15,000,decide to go on a spending spree.
(b)Between 2000 and 2009 the euro increased in value by over 30% relative to the U.S.dollar.
(c)The prospect that the Social Security system will not be viable beyond the year 2017 has many,many people saving more of their income than ever before.

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Definitions:

Motivations

The reasons or forces that drive individuals to take certain actions or behave in specific ways.

Structural Functionalism

A sociological perspective that interprets society as a structure with interrelated parts designed to meet the biological and social needs of individuals that make up that society.

Talcott Parsons

An American sociologist known for his contributions to the field of sociology, including the development of the action theory and the system theory.

Robert K. Merton

An American sociologist known for developing theories such as the self-fulfilling prophecy, strain theory, and the roles of social structure in scientific knowledge.