Possibilities in the short or long run growth.

Question

Want to see the full answer?

Answer 1

Question

Chapter 7, Problem 13P

To determine

Possibilities in the short or long run growth.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

In the long run, what happens to consumption in the economy when people are saving less? a) remains the same b) cannot tell from the graph c) decreases d) increases

The government of Prime Minister Shinzo Abe said it would oﬀer some $15 billion in ﬁnancing for businesses hit by the novel coronavirus and spend about $4 billion directly to prop up the economy.“As the top priority for the time being, we have to put all our eﬀort into keeping businesses alive,” Mr. Abe said.Still, in a $5 trillion economy, the measures may not be big enough to dig the country out of a big hole. SMBC Nikko Securities economist Junichi Makino said he expected the Japanese economy to shrink at an annualized pace of 5.8% in the January-to-March period following a 7.1% contraction in the last quarter of 2019.Japan is set to oﬀer emergency no-interest loans of about $1,900 to newly jobless people and others in trouble, and the borrowers may not have to pay the money back if they can’t ﬁnd work. Businesses at risk from the virus can access ﬁnancing or loan guarantees from the government QUESTIONS: 1. How would the financing plan designed to supports businesses impact the…

Suppose the government undertakes a large spending program to build community colleges and to make higher education free for many low-income families. How would you expect the program to affect output in the short run? Assuming that the program succeeds in increasing the skills of some workers, how would you expect it to output in the long run?