Analyze effects of change in household behavior on output

Reference no: EM13223692

Suppose households become more frugal so that there is a downward shift in the consumption function (decrease in autonomous consumption). Analyze the effects of this change in household behavior on real output, unemployment, national saving, the real interest rate, and investment in a closed classical economy. What are the implications for the "very long run"?

Reference no: EM13223692

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