Using the demand and supply of loanable funds, demonstrate the effect of the following on the interest rate. As a result, what would you expect to be the impact of the change on growth? (LO9-3) a-Government increases spending. b-Businesses become more productive. c-The people as a whole save more.
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Using the
a-Government increases spending.
b-Businesses become more productive.
c-The people as a whole save more.
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- Which of the following would you say is the more important determinant of strong economic growth – high levels of human capital or rich endowments of natural resources? Explain your answer.Suppose that the government changes the tax code to allow additional amounts of money to be placed in 401(k) retirement accounts, increasing the extent to which people can delay their tax obligations. Show the effect by shifting the appropriate curve in the market for loanable funds.28) Empirical evidence from 1960 to 2010 shows that convergence in economic growth is occurring in which of the following cases? A) Low-income industrial countries are catching up to high-income industrial countries. B) Low-income developing countries are catching up to high-income industrial countries. C) Low-income industrial countries are catching up to high-income developing countries. D) All low-income countries are catching up to all high-income countries. 29) Which of the following countries actually experienced negative economic growth from 1960 to 2010? A) Israel B) Singapore C) Niger D) Malaysia 30) Which of the following accurately describes the impact of the rule of law on a country's economic growth rate? A) Countries with a strong rule of law have faster economic growth. B) Countries with a weak rule of law have faster economic growth. C) Countries that enforce property rights through lawsuits have slower economic growth. D)…
- Why one nation experiences economic growth and another does not is a question that has intrigued economists since Adam Smith wrote An Inquiry into the Nature and Causes of the Wealth of Nations in 1776. Explain why each of the following would limit economic growth.a. The politically connected elite secure a large share of a country’s output and put the proceeds into foreign banks.having a small political elite that makes all the calls and decisions will lead to a small economic elite. b. The national philosophy is “Live for the moment and forget about tomorrow.” c. The government closes all of the schools so more people will be available for work.d. The country fears military invasion and spends half of its income on military gooAssume that the growth rate of the capital stock in each period is determined by the level of output in the previous period. 1) An economy of 80 million people has ten percent of them engaged in research and development, where their productivity is 0.0035. The economy is on a balanced growth path, when suddenly 2.88 million people move from goods production into R&D, raising the fraction there to 13.6 percent. In the one period that begins with this labor reallocation, the growth rate of output is ________. [Refer to the instruction above.] A) 2.8% B) 0.0% C) 3.8% D) 2.2%If a country experiences real economic growth of 12% per year, it can go from being one of the poorest to one of the richest in Question 47 options: one generation. In the last couple of decades China’s growth rate has been higher than 12%. one generation. However, in the last couple of decades not even China’s growth rate has been this high. three generations. In the last 75 years China’s growth rate has been higher than 12%. three generations. However, in the last couple of decades not even China’s growth rate has been 12%.
- Identify THREE public policies that can stimulate employment and facilitate economic growth in the Jamaican economy. Use examples to clearly illustrate how EACH policy can stimulate employment and facilitate economic growth.What has been the average annual growth rate of U.S. real GDP per person over the 120 years from 1900 to 2020? In which decade, beginning with the 1960s, was the growth of potential GDP per person greatest and slowest? Over the 120 years from 1900 to 2020, the average annual growth rate of U.S. real GDP per person is enter your response here percent.Relative to productivity growth in the United States, which of the following countries experienced the largest decline in productivity growth from 1990 to 2019? Canada Japan Germany the United Kingdom
- Country alpha and beta initially have the same real GDP per capita. Country Alpha experiences 3% economic growth, while Country Beta grows at a sustained rate of 9 percent. In 14 years, Country Beta's GDP will be approximately _________ that of Country AlphaIdentify one developed and one developing country. Research their recent economic growth rates. Analyze differences in the countries that would help lead to different rates of economic growth. In your response, be sure to avoid analyzing short-run factors of economic performance and focus on the factors that affect long-run economic growth.Suppose some of the country's capital is suddenly destroyed. If the depreciation rate, savings rate, and production function remain unchanged, then the real growth rate will _____ in the short run and the steady-state level of capital will _____ increase, decrease, or stay the same?