The Paradox of Thrift highlights the idea that:
A. Saving more is good for the economy in the short run
B. Saving more can be bad for the economy during a recession
C. In spending more, households will end up saving less
D. In spending more, workers may end up losing their jobs
B. Saving more can be bad for the economy during a recession
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Suppose technology advances within a nation. Which curves in the aggregate demand and aggregate supply model would be affected, and which way would they shift?
If a monopolistically competitive firm has excess capacity
A) it has exhausted all economies of scale. B) it is producing beyond the minimum efficient scale. C) it is experiencing diseconomies of scale. D) it produces a level of output that places it on the negatively sloped portion of its average total cost curve.