Unformatted text preview: o #3. o A surplus increase ss which lowers the equilibrium + real interest rate and increases savings and investment. • Tip: o What would a budget surplus from government do to producer surplus?/ o You have unknown effect. o You have compounding effects. You don’t know what’s going to happen. When supply shifts, you don’t know what happens to producer surplus. o TEST. o Treat is like any other supply and demand model....
View Full Document
This note was uploaded on 04/24/2009 for the course ECON 2105h taught by Professor Staff during the Spring '08 term at UGA.
- Spring '08