Question

plzz explian recardian theory

Answer 1

Ricardian equivalence is an economic theory that suggests that when a government tries to stimulate an economy by increasing debt-financed government spending, demand remains unchanged.

Answer 2

$\textcolor{red}{HEY!!!}$

➡
$\colorbox{red}{Ricardian Theory}$of Rent & CBD Theory are used to explain why rent prices can behave outside of the laws of supply and demand.

➡ You may have notice a particualr scenario where rent prices continued to increase in a stagnant population or when apartment were being built

➡IT STATES:--

↪Ricardian equivalence is an economic theory that suggests that when a government tries to stimulate an economy by increasing debt-financed government spending, demand remains unchanged.

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