Many rapidly developing countries in East Asia have pursued government policies, which encourage savings. According to the neoclassical growth model, if these policies stimulate savings but do not encourage technology growth, then these policies
a. will have no effect on the level of output.
b. will increase output growth permanently.
c. will increase output growth in the short-run, but not in the long-run.
d. will have no effect on the growth of output in the short-run or the long-run.
e. none of the above.
C
You might also like to view...
What two trends was Canada trying to address in negotiating CUSTA?
What will be an ideal response?
Unemployment insurance benefits the macroeconomy by supporting purchasing power
a. True b. False Indicate whether the statement is true or false
If demand rises and supply rises, equilibrium price will _____ and equilibrium quantity will _____.
Fill in the blank(s) with the appropriate word(s).
Which of the following would likely cause an increase in the supply of single-serve coffee makers?
A. a decrease in the cost of manufacturing single-serve coffee makers B. a widespread expectation that the price of single-serve coffee makers will rise in the future C. a decrease in the number of consumers demanding single-serve coffee makers D. an increase in the price of single-serve coffee makers