How higher future profitability-current equilibrum saving


consider a country with an economy structure consistent with the assumption of the classical model. suppose that business in this nation suddenly anticipate higher future profitability from investment they undertake take today.Explain whether or how this could affect the following:

The current equilibrum interest rate
Current equilibrum employment
Current equilibrum real GDP
Current equilibrum saving
Future equilibrum real GDP

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Microeconomics: How higher future profitability-current equilibrum saving
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