Economic growth, Microeconomics

a.  Referring to the table below and using the "Rule of 70," comment on long-term changes in the standard of living in the United States?

 b.  Would you rather live in the United States of 1900 with an annual income of $1million or in the United States of 2012 with an annual income of $50,000?  (Both incomes are stated in 2012 dollars). 

Briefly show and explain why?

c.   Increases in real GDP per capita depend on increases in labor productivity. 

What drives labor productivity?

d.  In developed economies, economic growth depends more on technological change than on increases in capital per hour worked.

What drives technological change?

e.  Briefly, what crucial role can/should government play to foster long-term economic growth?

f.   An economy - by definition - is always operating at potential GDP. 

i. True or False?ii. Briefly explain why?

g.   In a closed economy, or in an economy where net exports are zero (NX=0), total Savings must equal total Investment (S=I).

i. True or False?  ii. Why?

h.   If the government runs a balanced budget, where does all of S (National Savings), come from?

i.   The article quoted from in question 1d referred to a general de-levering of the U.S. household. It follows, then, that the US economy as a whole must be de-levering.  True? False? Why?

Posted Date: 4/2/2013 5:24:13 AM | Location : United States

Related Discussions:- Economic growth, Assignment Help, Ask Question on Economic growth, Get Answer, Expert's Help, Economic growth Discussions

Write discussion on Economic growth
Your posts are moderated
Related Questions
Measured cell emf are the basis for standard electrode potentials. chemistry assignments A method for the presentation of the data obtained from measurements of the equilibrium

law of diminishing marginal utility its assumptions, limitation, and its practical importance

Productivity:Generally, productivity measures efficiency or effectiveness of productive effort. Productivity can be measured in several different ways. Physical productivity measur

Hi, Can you help with writing journals homework? It should be in english as a second language. Ten pages different topics about Karl Marx economics views. I will give you the t

williomson''s model of managerial discretion

Managerial Economies: These are many managerial economies associated with large-scale production. A large firm is in the position to employ more highly qualified and speciali

Potentials of Productivity Growth: It needs to be noted that growth in productivity witnessed in the past are an average rate at the All-India level. There are considerable re

Determine the Business Cycle and Classical Economists Business Cycle:   The business cycle is the fluctuations in the rate of economic growth that take place in the economy. Th

a project report on marshalls marginal utility analysis