Explain the difference between long-run and short-run economic growth!

Q: real GDP

A: GDP or gross domestic product is the value of the goods & services that are produced within the…

Q: Please explain the effect of public expenditure on economic growth?

A: According to the given question In simple words we can say that a public expenditure is an…

Q: Although economic growth is typically measured by calculating the rate of change in real GDP, there…

A: Although economic growth is typically measured by calculating the rate of changein real GDP, there…

Q: describe the process by which a decrease in income taxes impacts economic growth.

A: The aggregate output function, as well as the labor demand and supply curves, decide the direction…

Q: Explain the innovation p

A: Innovation means an overall change or improvement in manufacturing technique, quality of product or…

Q: What would be the effect of each of the following events on actual and potential economic growth?…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: Briefly differentiate between nominal and real GDP. Why is real GDP more relevant measure of…

A: The given question has been solved below.

Q: Why does economic growth matter in an economy

A: An increase in the market value of goods and services over a specific period of time is referred to…

Q: Please distinguish between 'balanced growth' and 'unbalanced growth'

A: Both of the theories, the theory of balanced growth and unbalanced growth are based on Big push. It…

Q: What happens to the economic growth if the unemployment rate increases

A: According to economic theory ( Okun's Law), growth rate and unemployment are inversely related i.e.…

Q: Text:Using the labor market, the production function Real GDP = T (L, K), and the LRAS curve,…

A: In macroeconomics, economic fluctuations are generally studied using the concepts of aggregate…

Q: Which of the following causes economic growth? (A A decrease in the money supply A decrease in the…

A: * SOLUTION :-  (7)   From given information  The OPTION E is correct answer.

Q: A number of countries in the world have achieved sustained economic growth. In all of these…

A: The sustainable economic growth is the implication of the growth rate that an economy has achieved…

Q: What creates or stimulates the rate of economic growth in the economy, in macroeconomics

A: In macroeconomics, the rate of economic growth comes from the demand side and supply side.…

Q: 4.1 If real GDP in a small country in 2017 is $8 billion and real GDP in the same country in 2018 is…

A: GDP or gross domestic product refers to the total value of all goods and services produced in an…

Q: Why is real GDP a better measure of economic growth than nominal GDP?

A: Nominal GDP refers to the total value of finished goods and services that produced within the…

Q: Although economic growth is typically measured by calculating the rate of change in real GDP, there…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: Economic growth can originate from the demand side or from the supply side of the economy. Discuss…

A: Increasing demand for products and services, according to demand-side economics, is the most…

Q: Long-run economic growth can occur as a result of

A: Economic growth occurs as a result of increase in GDP.

Q: The following table gives some figures from forecasts of real GDP (in 2005 dollars) and population…

A: The gross domestic product (GDP) is defined as the market value of all the final commodities(goods…

Q: Why is Real GDP a better indicator of productive growth than Nominal GDP ?

A: Gross Domestic Product (GDP) measures the value of final goods and services produced with in the…

Q: growth in real GDP is not always seen as economic growth. why?

A: GDP or Gross Domestic Product refers to final market values of all goods and services produced in a…

Q: For an economy in which there is no technological progress, explain what must happen for the steady…

A: Steady State is defined as an equilibrium growth path in Solow Model where the variables tend to…

Q: Suppose there is an increase in the saving rate. We know that this will cause an increase in which…

A: Solow growth model is an exogeneous growth model which argues that in the short run growth is…

Q: Taylor (1997) explains that when estimating long-run real GDP growth, we use the sum of wage growth…

A: Taylor Rule of 1997 states the changes that should be made in the interest rate due to inflation and…

Q: An increase in the availability of credit leads to faster economic growth. Agree or disagree?…

A: Credits refers the availability  of capital or cash in the economy so , here we can discuss the…

Q: An increase in would lead to an increase in long-run economic growth. a) consumer spending and…

A: Economic growth is the permanent increase in real GDP per capita.

Q: How come higher saving leads to more rapid growth?

A: The higher savings means the resources and incomes of the nationals has been used in consumption at…

Q: How do culture and institutions interact, as two fundamental causes of long-run economic growth?…

A: Culture: It refers to the set of rules and regulations, laws, language, etc which people use for one…

Q: Explains the problems that declining populations can cause for long-run economic growth

A: Economic growth is an expansion in the production of goods and services in an economy. Economic…

Q: Diagrammatically explain how savings affect economic growth?

A: Saving is very important for the growth of the economy. The saving that is accumulated can be…

Q: Why might it be necessary to reduce consumer spending in order to attain faster economic growth?…

A: Sustainable economic growth implies a rate of growth that, particularly for future generations, can…

Q: Which of the following would not necessarily lead to long-term economic growth

A: A rise in the output of goods and services in an economy is referred to as economic development.…

Q: onomic gro

A: The non economic factors are : 1. Human Resources  They are considered to be an important factor in…

Q: Explain the concept of economic growth and give the examples

A: Economics is the science of social sciences. Here, we study about the production, consumption,…