Reflect on the concepts covered in the second half of this course and respond to the following questions: Explain what the consumption function shows and describe what is held constant along the co

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Reflect on the concepts covered in the second half of this course and respond to the following questions:

  • Explain what the consumption function shows and describe what is held constant along the consumption function.
  • Describe what happens when firms and workers underestimate future prices in the economy. Focus your answer on what would happen to actual output as opposed to the expected potential output.
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