3. Suppose an increase in air pollution causes capital to wear out more rapidly, doubling the rate ofdepreciation. How would this affect economic growth?

Answered: 3. Suppose an increase in air pollution…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter32: Macroeconomic Policy Around The World

Section: Chapter Questions

Problem 16RQ: What strategies did the East Asian Tigers employ to stimulate economic growth?

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3. Suppose an increase in air pollution causes capital to wear out more rapidly, doubling the rate of
depreciation. How would this affect economic growth?

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Economic depreciation is a proportion of the abatement in the market estimation of a resource after some time from compelling financial components. This type of deterioration ordinarily relates to land and capita which can lose an incentive for a few reasons, for example, the expansion of ominous development in closeness to a property, street terminations, a decrease in the nature of an area, or other negative impacts. Depreciation generally became the cause of harm in the development of economics.

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