Latest Questions & Answers

Q: Why wouldn’t investment and saving flows at full employment always be equal

Why wouldn’t investment and saving flows at full employment always be equal?

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Q: What causes consumer confidence to change (Figure 10.10)?

What causes consumer confidence to change (Figure 10.10)?

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Q: How might declining prices affect a firm’s decision to borrow and invest

How might declining prices affect a firm’s decision to borrow and invest?

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Q: If an inflationary gap exists, what will happen to business inventories

If an inflationary gap exists, what will happen to business inventories? How will producers respond?

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Q: Why wouldn’t market participants always want to buy all the output produced

Why wouldn’t market participants always want to buy all the output produced?

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Q: Why are faster supplier deliveries considered a negative leading indicator? (

Why are faster supplier deliveries considered a negative leading indicator? (See News, p. 198.)

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Q: Why did New York Governor Cuomo cut state spending in 2011–

Why did New York Governor Cuomo cut state spending in 2011–2012? How did that affect AD? (See News, p. 192.)  

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Q: According to the World View on page 191, why did Panasonic

According to the World View on page 191, why did Panasonic cut investment spending in 2009? What this a rational response?

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Q: Why would an employed consumer cut spending when other workers were being

Why would an employed consumer cut spending when other workers were being laid off (see News, p. 187)?

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Q: Why do rich people have a higher marginal propensity to save than

Why do rich people have a higher marginal propensity to save than poor people?

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