Explain the following as effects of low policy rates to the growth of an economy: 1. It can cause inflationary pressure 2. It might lead to a boost in economic growth 3. Investments are more desirable  4. There will be relatively low borrowing cost for government.

Q: Four of the determinants of economic growth relate to supply side, i.e. the physical ability of the…

A: Economic growth is defined as an increase in the production of economic goods and services in an…

Q: GDP

A: GDP is final value of godds and services produces within the geographic boundaries of a country…

Q: 20 Macroeconomic Information for Mexico: 2020 Q2 GDP (in 2020 Q2 pesos) 4.97 trillion pesos 2020…

A: Hello, Thank you for the question. Since there are multiple questions posted, only the first…

Q: Discuss the argument that the financial system plays an important role in mitigating the volatility…

A: A financial system is the system of regional,global,  or firm-specific institutions and practices…

Q: If a country is maintaining a healthy amount of growth, which of the following accurately describes…

A: The economies, and nations around the world are majorly concerned about their growth, and…

Q: what aggregate production function elements are most important in bringing about growth in GDP per…

A: GDP (Gross Domestic Product): It shows the production of goods and services in an economy which is…

Q: Governor Mitch Daniels advocates that the government intervene less in business to promote jobs and…

A: Governor Mitch Daniels advocates that the government intervene less in business to promote jobs and…

Q: If a country were to increase its saving rate, then in the long run it would also increase its…

A: The answer is - Growth rate of productivity

Q: f a country is experiencing a relatively high rate of inflation, what impact will this have on the…

A: Inflation refers to the hike in general prices in a nation. When it becomes high, it can adversely…

Q: Tremendous decline has been observed in GDP growth rate of pakistan.explain reasons

A: The economy of Pakistan has observed a major decline in the GDP growth rate of the economy, because…

Q: Identify each of the following topics as being part of microeconomics or macroeconomics: d.​factors…

A: The study of economics deals with how scarce resources are allocated in a manner that most of the…

Q: Classify the following topics as related to micro or macroeconomics: A family's decision on how…

A: Definitions- Microeconomics is a branch of economics that studies the behaviour of individuals or…

Q: Suppose that nominal GDP was $12 trillion in 2040 in Bedrock. In 2050, nominal GDP was $15 trillion…

A: Economic growth is defined as an increase in the production of economic goods and services from one…

Q: If real GDP was $9,950 billion in Year 2008 and $10,270 billion in Year 2009. What was the rate of…

A: Growth means an increase in real GDP in such a manner that productivity increases and it causes an…

Q: “The Sollow model shows that the saving rate does not affect the growth rate in the long-run, so we…

A: The saving rate is the rate that measures the amount of money in percentage that is saved by the…

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: 7.2.5  The measure of GDP for economic growth is not always perfect.  Describe any two problems that…

A: Answer to the question is as follows :

Q: Economists who have studied economic growth find strong evidence for convergence among countries…

A: Convergence refers to the situation where all the economy converge in terms of per capita income…

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

A: In an economy, economic growth is explained in two different periods such thay short-run and…

Q: Explain how each dollar spent by consumers throughout the economy ultimately comes back to people in…

A: The household sector is constituted by consumers and business sector is constituted by producers. We…

Q: Identify THREE public policies that can stimulate employment and facilitate economic growth in an…

A: Definition: further developed framework and more successful economy frameworks and training…

Q: Assume a hypothetical society that decides to reduce consumption (production of consumption goods)…

A: (1)   The increase in investment leads to long term economic growth. That is, increase in investment…

Q: Q12: Which of the following policies does not stimulate economic growth in the long run? (a) To…

A: Economic growth depends upon the level of investment in the economy. In the long run, the investment…

Q: Explain why a fall in economic growth could lead to a rise in unemployment. Use a diagram to support…

A: Economic growth: It is the measure of the rise in the production of goods and services over a…

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: 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: 12. Suppose an economy represented by the graph below started with K = 25, so it was in a steady…

A: Suppose an economy represented by the graph below started with K = 25 ,so it was in a steady state…

Q: In a hypothetical economy, real GDP is $10 trillion, investment is $2 trillion, the capital stock is…

A:

Q: The long-run effects of an increase in the saving rate include...? a. a higher level of…

A: We assume that the factors of production have diminishing returns to scale. So if the savings rate…

Q: Policymakers trying to promote economic growth must confront the issue of what kinds of capital the…

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Q: If nominal GDP for 2016 is valued at R3 625m and nominal GDP for 2017 is valued at R3 812m, then it…

A: Nominal GDP = Current year quantity * Current year price. Real GDP = Current year quantity * Base…

Q: Expecting an improving economy will generally cause an increase in investment that shifts the _____…

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Q: 18 - In the neoclassical growth model, the steady-state growth rate of output per capita is a) the…

A: Neoclassical growth model: The neoclassical growth theory is the one that showcases that a steady…

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: Explain how avoiding interest rate hikes could assist in accelerating economic growth

A: Economic growth is a rise within the production of products and services in an economy. Will…

Q: Does the relative durations of expansions and recessions help explain the fact that long-term…

A: The relative duration of expansions and recessions helps to understand the life of the business…

Q: Small differences in growth rates in the size of the economy, over several decades, will result in…

A: GDP means total value of goods and services produced in national boundaries in a year . And real GDP…