Supposed society decided however and for whatever reason that it wanted to change what's produced and what individual households are consuming to change from one allocation in distribution that's feasible to another couldn't do that how and why
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There are strong theoretical reasons to expect that changes in wealth are responsible for changes in consumption. Nonetheless, one reason that we observe a tight link between consumption and disposable income is Group of answer choices Ricardian equivalence. households attempt to smooth their consumption. household saving provides a buffer between income and expenditure. credit rationing which changes the intertemporal budget constraint for borrowers.
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Scarcity forces society to come up with a mechanism to determine how output is to be distributed. If society decided not to use price as an allocative mechanism (price determines who receives goods and services), then what would you suggest as an alternative? Explain your reasoning.
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