Answer the following statement(s) true (T) or false (F)
1. Economists have shown that economic growth results in political freedom.
2. On average, societies where saving some of one’s income is favored over spending it grow at a slower rate than other societies.
3. Investments by foreigners tend to reduce a country’s growth over the long run.
4. While some economists believe that improvements in infrastructure can increase productivity, other economists believe that increased productivity leads to better infrastructure.
5. A government can improve productivity by investing in research and development.
1. FALSE
2. FALSE
3. FALSE
4. TRUE
5. TRUE
You might also like to view...
If the Fed increases the inflation rate in the short run before people's expected inflation changes, what occurs? What happens in the long run?
What will be an ideal response?
Refer to the figure above. What is the price effect of a price increase from $3 to $5?
A) $200 B) $400 C) $800 D) $1,000
The ________ curves are both vertical
A) long-run aggregate supply and long-run Phillips B) aggregate demand and short-run Phillips C) short-run aggregate supply and short-run Phillips D) long-run aggregate supply and short-run Phillips
Based on the graph above, if the economy is at point 2, then (assuming no price shocks and no changes in actual and potential output) the inflation rate next period will be ________ percent
A) 5 B) 3.5 C) 4.5 D) 4 E) none of the above