Describe the effect of each of the following on “the potential income” and on “the standard of living” using macroeconomic production function and labor market equilibrium (Note: draw separate graphs for each.) (Hint: Review the slides and recordings of Lectures 3-4 for similar graphical analysis). a) Development of a new technology that increases the productivity of workers. b) An increase in the country’s population. c) Establishment of new manufacturing factories by increased investments.

Describe the effect of each of the following on “the potential income” and on “the standard of living” using macroeconomic production function and labor market equilibrium (Note: draw separate graphs for each.) (Hint: Review the slides and recordings of Lectures 3-4 for similar graphical analysis). a) Development of a new technology that increases the productivity of workers. b) An increase in the country’s population. c) Establishment of new manufacturing factories by increased investments.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter17: Economic Growth: Resources, Technology, Ideas And Institutions

Section: Chapter Questions

Problem 6WNG

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