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QUESTION

Reflect on the concepts covered in the second half of this course and respond to the following questions: Explain what the consumption function shows and describe what is held constant along the co

Reflect on the concepts covered in the second half of this course and respond to the following questions:

  • Explain what the consumption function shows and describe what is held constant along the consumption function.
  • Describe what happens when firms and workers underestimate future prices in the economy. Focus your answer on what would happen to actual output as opposed to the expected potential output.
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