consider a country with an economic structure consistent with the assumptions of the classical model. Suppose that businesses in this nation suddenly anticipate higher future proftability from investments they undertake today. explain whether or how this could affect the folling.
a the current equilibrium interest rate
b. the current equilibrium real gdp
c. current equilibrium employement
d. current eqilibrium savings
e, future equilibrium real gdp
1 answer
All would increase due to economic growth and the shiftward of all curves rightward. Price level will be ambiguous.
9 answers