Question
What is the paradox of thrift? In a closed economy NX = 0. Using the equation for a closed economy: Y = C+I+G, and any
What is the paradox of thrift? In a closed economy NX = 0. Using the equation for a closed economy: Y = C+I+G, and any other equations that you think are appropriate, choose appropriate numbers and solve the equations to DEMONSTRATE the paradox of thrift. Using the numbers you generated, how much should government spending increase to counteract the shortfall in economic output?
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
