Question

What is transitory variation in the economy?

What is transitory variation in the economy?

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Answer #1

Answer :In the calculation of GNP in an economy, There is variation in investment as compared to consumption. As consumption should move random cake or like in simple way. It should be analysis that consumption should move in simple manner or one by one in systematic manner where as investment behaves like transitive variation as it means that in long terms it behaves likes a swings in a systematic manner. It should not go one by one like consumption but works like a swings at higher phase.

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