Question: 1. Consider a country whose economic structure matches the assump imptions of the classical model. After reading a recent best-seller documenting a growing population of

1. Consider a country whose economic structure matches the assump imptions of the classical model. After reading a recent best-seller documenting a growing population of low-income elderly people who were ill prepared for retirement, most resi- dents of this country decide to increase their say- ing at any given interest rate. Explain whether or how this could affect the following: a. The current equilibrium interest rate b. Current equilibrium real GDP c. Current equilibrium employment d. Current equilibrium investment e. Future equilibrium real GDP
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