What will happen to output assume that consumer confidence

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Q. Consider the economy described in problem 8. Suppose that consumers decide to consume less (and therefore to save more) for any given amount of disposable income. Specifically, assume that consumer confidence (c0) falls. What will happen to output?

Q. To produce a recorded cd, a firm uses one blank disk and the services of a recording machine for one hour. draw an isoquant for this production process and explain its shape.

Reference no: EM1351867

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