Question: Explain how equilibrium would be restored in the circular flow
Explain how equilibrium would be restored in the circular flow of income if there were a fall in investment.
Answer to relevant QuestionsExplain the circumstances under which an increase inpensions and child benefit would(a) Increase national income; (b) Leave national income unaffected; (c) Decrease national income.At what phase of the business cycle is the average duration of unemployment likely to be the highest? Explain.The overall balance of payments must always balance. If this is the case, why might a deficit on one part of the balance of payments is seen as a problem?What is meant by hysteresis when applied to unemployment? How do you account for this phenomenon in the 1980s?What enables banks safely to engage in both maturity transformation and risk transformation?
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