Elucidate how each of the following will affect

Reference no: EM1338633

Relationships within an economy

Please explain in detail so i can gain full understanding of this subject.

Explain how each of the following will affect the consumption and saving schedules (as they relate to GDP) or the investment schedule, other things equal:

a. a large increase in the value of real estate, including private houses
b. a decline in the real interest rate
c. a sharp, sustained decline in stock prices
d. an increase in the rate of population growth.
e. the development of a cheaper method of manufacturing computer chips.
f. a sizable increase in the retirement age for collecting social security benefits.

Relate each of the following to the recent productivity acceleration:

a. information technology
b. increasing returns
c. network effects
d. global competition

Reference no: EM1338633

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