IMAGINE YOU EARN AED 500 PER MONTH. WOULD YOU SPEND TO ACHIEVE YOUR LONG RUN GOAL/SHORT RUN GOAL?JUSTIFY

The person who earns AED 500 can only spend to achieve short-run goals.

Explanation:

Amount of wage per month = AED 500

For a person to achieve a long-run goal, she must save.  Savings build capital resources that are needed for long-run goals.  By their nature, long-run goals involve huge investments.  Since this wage earner is spending, it is not possible for her to save enough unless she saves more than she spends.

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