Discussion on economic recession also Elucidate the effect of this invention in the short run in the short run also in the long run.
1. Consumption accounts for about 60% of GDP, while investments accounts for about 20% for GDP. describe however many economists think which, to understand an economic recession, it is more important to look at investment than consumption. Elucidate why?
2. Suppose which a scientific breakthrough leads to the discovery of a new cheap source of energy. Illustrate what would be the effect of this invention in the short-run also in the long-run?