question archive 1) Please explain the impact of a change in the savings rate on the output
1) Please explain the impact of a change in the savings rate on the output
Subject:EconomicsPrice: Bought3
1) Please explain the impact of a change in the savings rate on the output.
2) In the basic one-period model, government spending is modelled as
the acquisition of goods by the government, with the government simply throwing the goods away. (Provide detailed answers for parts a and b)
a) Is this an accurate way to capture what the government does? If so, in what ways?
b) If not, in what ways could we alter the model to make it capture the role of the government more accurately?
