Suppose there is an increase in the saving rate. Explain what effect this will have on output, output per worker, the rate of growth of output, and the rate of growth of output per worker
What will be an ideal response?
The increase in s will cause an increase in S/N and I/N. At the initial K/N, depreciation is less than investment. Alternatively, there is excess investment to offset the amount of capital that wears out. So, the capital stock will increase. This will cause an increase in K/N, Y/N, and S/N. As Y/N rises, so will C/N.
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An example of permanent insurance is ________ insurance, and an example of temporary insurance is ________ insurance
A) term; variable life B) whole life; variable life C) whole life; term D) term; whole life
If the simplified technology costs $2 million to develop, what is the expected gain from developing the voice activated software
a. $5million b. $6million c. $7million d. $10million
Both screening and signaling:
A. are ways to decrease information asymmetry between two parties. B. can increase surplus gained in a market. C. correct inefficiency in the market. D. All of these statements are true.
The difference between the amount consumers would be willing to pay and the amount they actually pay for a good is called
a. price elasticity of demand. b. consumer surplus. c. the substitution effect. d. income elasticity of demand.