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
economic analysis of demand on retailer in ustralia

How do we measure economic growth and why do we need economic growth? (ii) What can governments do to stimulate economic growth and create jobs? (provide some current examples) (ii

Which of the following statements is correct? a. Consumers have the ability to buy everything they desire. b. A consumer''s budget line shows the limits to what a consumer can buy.

Write a 1-2 page summary on markey failure



what are the forecasting techniques


1-      a-  What are the five components of a time series? b- Briefly explain how you would estimate each component. c- What does deterministc trend mean?  How do you detren

americana is a small country that produces and consumes jelly beans. The world price of jelly beans is $1 per bag, americana''s demand and supply for jelly beans are governed by th