Microeconmics

1 . Economists agree that an economy natesnot grow without nest egg . This convey forgoing current use of goods and services , saving , and investing in capital goods . Using the fruit possibility frontier coil , explain the tradeoff between current consumption and savings and how this impacts economic harvest-feastIf think of savings and consumption as twain point of intersections , consequently resources must be allocated to maximize production in to have economic growth . In a production possibility frontier , an economy is said to be businesslike only if it can produce more of one product by producing less of another product . Back to consumption and saving , consumption is good whenever saving is reduced . overly saving is good when consumption is reduced . Both these instances go out fully utilize the resources according to PPF . To have an economic growth certain factors must be introduced to PPF like technological advances , fall in resource quality and increase in resources .

If these factors are obtained , then production of goods will increase and the PPF will teddy rightward . The rightward shift of the PPF is kn induce as the economic growth (Kaplan , 20022 . One of the other(a) economic laws was called Say s Law that stated that - supply creates its own demand . Using the circular flow graph explain what this means and how an expanding population results in economic growthSay s law can be illustrated using a simple flow chart . People own the resources which they sell to firms . Firms pay the resources and it generates income for the households . The amount of income would be...If you wish to get a full essay, order it on our website: Ordercustompaper.com

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