Explain how each of the following will affect the consumption and saving schedules (as they relate to GDP) or the investment schedule, other things equal:a. A large increase in the value of real estate, including private houses.b. A decline in the real interest rate.c. A sharp, sustained decline in stock prices.d. An increase in the rate of population growth.e. The development of a cheaper method of manufacturing computer chips.f. A sizable increase in the retirement age for collecting Social Security benefits.g. An increase in the Federal personal income tax.
Explain how each of the following will affect the consumption and saving schedules (as they relate to GDP) or the investment schedule, other things equal:a. A large increase in the value of real estate, including private houses.b. A decline in the real interest rate.c. A sharp, sustained decline in stock prices.d. An increase in the rate of population growth.e. The development of a cheaper method of manufacturing computer chips.f. A sizable increase in the retirement age for collecting Social Security benefits.g. An increase in the Federal personal income tax.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp
Section: Chapter Questions
Problem 9WNG
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Explain how each of the following will affect the consumption and saving schedules (as they relate to GDP) or the investment schedule, other things equal:
a. A large increase in the value of real estate, including private houses.
b. A decline in the real interest rate.
c. A sharp, sustained decline in stock prices.
d. An increase in the rate of population growth.
e. The development of a cheaper method of manufacturing computer chips.
f. A sizable increase in the retirement age for collecting Social Security benefits.
g. An increase in the Federal personal income tax.
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