How will each of the following affect the steady-state growth rate of the standard of living? Assume the economy is currently in the steady state
a. an increase in the depreciation rate
b. an increase in the growth rate of labor-augmenting technological change
c. a decrease in the saving rate
d. a decrease in the labor-force growth rate
a. It will not change.
b. It will increase.
c. It will not change.
d. It will not change.
You might also like to view...
During the turmoil in the market for subprime mortgages in 2007 and 2008, the Fed increased the volume of discount loans. The goal of the Fed was to
A) reassure financial markets and promote financial stability. B) stimulate economic growth. C) reduce unemployment. D) reduce the rate of inflation. E) reduce the current account deficit.
The classical model's theory of the interest rate does not apply in the short run
a. True b. False
International per capita GDP comparisons are misleading when countries involved differ greatly in
a. the type of economic system each country uses to solve its economic problem. b. the freedom of their election processes. c. the percentage of economic activity that is transacted in organized markets. d. the quantity of human and natural resources they possess.
The level of U.S. exports depends directly on
A. the size of the spending multiplier in other countries. B. the size of the spending multiplier in the United States. C. the level of income in the United States. D. the level of income in other countries.