Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Chapter 16, Problem 6RQ
To determine
Relation between the interest rate and growth rate according to the neoclassical consumption model.
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What are the key building blocks of the neoclassical consumption model?
One practical limitation of the Classical or Neoclassical model is that it suggests allowing the economy to self-correct in the long run, but recessions may last a very long time. How severe is this problem and why? What is one example?
Why does neoclassical economics emphasize growth?
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Macroeconomics (Fourth Edition)
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