Explain what tendency does consumption smoothing refer to and why is it assumed in an intertemporal model?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter24: The Aggregate Demand/aggregate Supply Model
Section: Chapter Questions
Problem 32RQ: How is long-term growth illustrated in an AD/AS model?
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Explain what tendency does consumption smoothing refer to and why is it assumed in

an intertemporal model?

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