ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 5, Problem 2.2P
To determine
The possibility of long term growth as a result of fluctuations in the economic activity.
Concept Introduction:
Economic fluctuations (Business cycles): are simply ups and down in the
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Describe the various components of fluctuations in economic activity over time. Because economic activity fluctuates, how is long-term growth possible?
Does the relative durations of expansions and recessions help explain the fact that long-term economic growth has been positive?
Business cycles are pervasive in all macroeconomic variables. Does the relative durations of expansions and recessions help explain the fact that long-term economic growth has been positive?
Chapter 5 Solutions
ECON MACRO
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Similar questions
- Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in response to each of the following changes? (a) The investment rate doubles (b) the depreciation rate falls by 10% (c) The productivity level rises by 10% (d) an earthquake destroys 75% of the capital stock (e) A more generous immigration policy leads the population to double.arrow_forwardWhat are the two major determinants of the overall growth of the economy according to the view of economic growth based on labor data?arrow_forwardWhy is real GDP a better measure of economic growth than nominal GDP?arrow_forward
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