Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 8, Problem 7DQ
To determine
Verify the given statement is true or not.
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True or false? If false, explain why.a. Technological advance, which to date has played a relatively small role in U.S. economic growth, is destined to play a more important role in the future.b. Many public capital goods are complementary to private capital goods.c. Immigration has slowed economic growth in the United States.
1. Identify THREE public policies that can stimulate employment and facilitate economic growth in an economy.
a. Use examples to clearly illustrate how EACH policy can stimulate employment and facilitate economic growth in the Country of Grenada.
a. Identify THREE public policies that can stimulate employment and facilitate economic growth in an economy.
Use examples to clearly illustrate how EACH policy can stimulate employment and facilitate economic growth
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- List the areas where government policy can help economic growth.arrow_forwardWhat policies can the government of a free-market economy implement to stimulate economic growth?arrow_forward1) The following public policies can facilitate economic growth in an economy. Give a definition for each policy. a. Distributive b. Redistributive c. Regulatory and substantive policiesarrow_forward
- 1. Assume that there are two countries with the following characteristics. Per capita Output Y = A.kª.h¹-a A-technology k-per capita physical capital h-per capita human capital a-0.6 Country A with $500 per capita income saves 25% of its output and invests on physical capital, and 25% on investing in human capital. Country B with $5000 per capita income saves 25% of its output and invests on physical capital, and 35% on investing in human capital. a. What are the growth rates of the two countries? b. What will be the per capita income levels after 5 years? c. Will there be convergence on the per capita income in the future?arrow_forward1) The following public policies can facilitate economic growth in an economy. For each policy, give a reason for why this is possible. a. Distributive b. Redistributive c. Regulatory and substantive policiesarrow_forwardTRUE OR FALSE: 1. With regards to the nation’s economy, population growth rate has a major impact on it. 2. In underdeveloped nations, practically all income is utilized to buy consumer goods, which leaves little, if there’s any, for the savings.arrow_forward
- 20. In recent years, many DVCS have come to realize that A. private capital investment is essential for economic growth in DVCS. B. expanded international trade is harmful to DVCS. C. government involvement in economic development is the only avenue for economic growth. D. the International Monetary Fund is the major institutional barrier to economic growth.arrow_forwardAccording to 2019 data, Japan will continue to be the most aged country in the world until 2050. Japan's workforce is estimated to drop by 13 million by 2040. How will the economy be impacted? a. The impacts on labor productivity will exceed the impacts on economic growth. b. The impacts on economic growth will exceed the impacts on labor productivity. c. The impacts on economic growth and labor productivity will be equal/comparable. d. Neither labor productivity nor economic growth will be impacted.arrow_forwardQUESTION 1 Assume a Cobb-Douglas production with capital share 1/3; total factor productivity equal to 1, total population in an economy is equal to 1, depreciation rate is 5 percent and saving rate is 10 percent. Then the steady-state level of capital is about: a. 0.8 b. 1.6 c.1.3 d.2.8 e. 0.3Question 2 If a natural disaster destroys a large portion of a country's capital stock but the saving and depreciation rates are unchanged, the Solow model predicts that the economy will grow and eventually reach:a. A lower steady-state level of output than it would have before the disasterb. None of these answers is correctC. The same steady-state level of output as it would have before the disasterd. A higher steady-state level of output than it would have before the disaster e. Not enough information is given QUESTION 3 Suppose you are given the data for Brazil and Portugal. In Brazil, the saving rate is 0.1 and the depreciation rate is 0.1, while in Portugal saving rate is 0.2 and the…arrow_forward
- 3. Write down and discuss the three stylized facts about economic growth in the cross-sectional dimension.arrow_forwardAnswer and Explain in Philippine's Context 1. What form or combination of political institutions is required to enhance economic growth? 2. Do political institutions affect economic performance regardless of any preconditions or stages of economic development? In other words, does a new democracy tend to perform as well as a consolidated, or well-established, democracy if their political institutions run similarly?reference:https://drive.google.com/file/d/17GWtQrkypD1hQ_oaBzaGEk-BvopP19pK/view?usp=sharingarrow_forward
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