Which of the following most clearly states the "paradox of thrift"?
a. If households simultaneously attempt to increase their savings, the result may be a reduction in demand, output, and total savings.
b. A strong, healthy economy can be achieved if most households are heavily in debt.
c. A high savings rate will provide the funds for investment, which is a driving force of long-term economic growth.
d. A reduction in savings and an increase in consumption will expand output and employment.
A
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The unemployment rate is the number of people unemployed divided by the
A) number of people employed, then multiplied by 100. B) working-age population, then multiplied by 100. C) labor force, then multiplied by 100. D) labor force participation rate, then multiplied by the population. E) population, then multiplied by 100.
____ occurs when a consumer's quantity demanded for a good decreases because a ____ number of consumers purchase the same good
a. A negative network externality; greater b. A positive network externality; greater c. Bandwagon effect; fewer d. A positive network externality; fewer