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Unformatted text preview: in the future. However when everyone saves, all of our incomes fall, and we must all consume less today. Explain this apparent contradiction. 3) Why might a college graduate enter the job market during a period of economic expansion, but enter grad school during a period of economic contraction? 4) “Actual production” is GDP plus household production. Would household production increase or decrease during an economic contraction? How about during an economic expansion? Would “actual” production fluctuate as much as, say, GDP over the business cycle?...
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This homework help was uploaded on 04/09/2008 for the course ECON 001 taught by Professor Caseyquinn during the Spring '08 term at Lehigh University .
- Spring '08