Question

@jtug6

Answer 1

Sorry, had to remember how to screenshot.

Answer 2

Hmmm. From what I remember GDP can be represented as an equation. GDP = C + I + G + (X-M). Where C is consumption, I is investment, G is government expenditure, and X/M are exports/imports. I'm still thinking but I believe the effects mentioned in each impact on one or more of the variables listed in the equation, either positively or negatively. Im trying to see how each relates to them though.

Answer 3

I'm confused...

Answer 4

I mean, I sort of get it, but I'm still a bit confused.

Answer 5

Well GDP is the gross domestic production, or the national income, right? As an equation it's considering spendings, investments, ect. And you have to think logically about what happens to each of the following from the effects, like with the decrease in the level of saving. when people decrease how much they save, that generally means they'd spend more, which in turn affects consumer spending positively, ect.

Answer 6

Thats at least how i remember it ;3

Answer 7

Okay, that's kind of the line of thinking I had. I just needed a bit of... Evidence, I suppose? It would make sense that less saving = more spending, but I wasn't sure if that's what they're looking for.

Answer 8

@jtug6 come back. Where'd you go?

Answer 9

Right its just that you have to see how each impacts the variables and whether the net total makes it more positive or negative i suppose.

Answer 10

still here =)

Answer 11

Hmmm okay thanks. Next question:

Answer 12

If the money supply increases, what else must happen to avoid inflation?

I'm thinking wages have to increase?

Answer 13

That'd make sense. If money supply is increasing, then theres obviously more money as a result. If wages were to stay constant then there'd be excess money left over and that as a result would cause inflation. So yeah that seems reasonable to me

Answer 14

Okay great! ^-^

Answer 15

whereas increasing wages would balance out that increase in money supply

Answer 16

Right.

Answer 17

Is the Lorenz Curve a useful measure, why or why not?

I'm assuming it would be...

Answer 18

hmm. im not sure what the lorenz curve is but from searching it up and looking @ graphs yeah it appears to be a useful measurement because it's demonstrating the distribution of income.

Answer 19

Sooooo why would that be useful?

Answer 20

Because as compared to a graph that shows a straight diagonal line of equality distribution, the Lorenz curve portrays the realistic aspect of that wealth distribution. It's use is that its showing the difference in the amount of inequality basically.

Answer 21

Thank you.

Answer 22

see that ;P

Answer 23

no problem ;3

Answer 24

I may have more, but none at the moment. Thank you.

Answer 25

sure thing ;]