Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 17, Problem 3WNG
To determine
Relationship between production function and the long run
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Using the slow growth model, a higher savings rate produces a temporary increase in the growth rate, but not a permanent increase
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False
Using the one-period closed economy model, show graphically the effects of a decrease in government spending on consumption, leisure, real wage rate, output, labour demand, labour supply.
Using the production function Real GDP = T (L, K), and the LRAS curve, describe the process by which a decline in interest rates impacts the use of capital and economic growth.
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According to investopdia.com,a steady-state economy is an economy structured to balance growth with environmental integrity, seeking to find an equilibrium between production growth and population growth. This type of economy aims for the efficient use of natural resources but also seeks a fair distribution of the wealth generated from the development of those resources. Is this type of economy more plausible than continued, unlimited economic growth? Why or why not?
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in relative terms, what accounts for more of the growth slowdown, if we break it down to just investment and TFP?
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Please distinguish between 'balanced growth' and 'unbalanced growth'.
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Analyze the impact of FDI on economic growth, employment generation, technology transfer, human capital development, and infrastructure improvements.
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“The Solow Model is useful for understanding growth in the short run but not for understanding long- run growth.” Discuss.
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When using AD/AS analysis to illustrate changes within an economy, which of the following would NOT need to be considered when looking at changes to economic growth?
Select one:
a. More efficient use of the capital stock
b. Developing a more efficient capital and finance sector
c. Increased labour productivity
d. Increased availability of social capital
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Answer if true or false.
• Due to trade-off, Capital & Income has an inverse relationship.
• With the absence of savings, countries has no way to increase growth. Thus, going into a vicious circle.
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What were the effects of Divergence on economic growth in Europe and China?
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What is Harrod's growth model
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International data show a positive correlation between political stability and economic growth.
Through what mechanism could strong economic growth lead to political stability?
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Using the Solow model framework, answer the following questions, AND DRAW! the graph with the correct movement for:A. What would we expect to happen to the capital stock, and thus income, in the event consumer preferences changed and the average savings rate DECREASES for a given country.
B. What would we expect to happen to the capital stock, and thus income, in the event birth rates broadly INCREASED.
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