According to economist Paul Romer, economies seeking high economic growth must
A. encourage consumption by households.
B. drastically lower their standards of living.
C. invest in knowledge.
D. reduce their population growth by adopting a one-child policy.
Answer: C
You might also like to view...
Refer to Figure 27-7. Given that the economy has moved from A to B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?
A) increase government spending B) contractionary fiscal policy C) increase taxes D) decrease interest rates
What are the three major components of economic growth?
What will be an ideal response?
The "trickle down" theory is based on the notion of multiplier effects
Indicate whether the statement is true or false
Which of the following is responsible for invoking the Fed's emergency powers?
A. FOMC B. a majority of the Federal Reserve Bank presidents C. Board of Governors D. Fed Chairman