1. An increase in the saving rate will affect which of the following variables i
ID: 1113312 • Letter: 1
Question
1. An increase in the saving rate will affect which of the following variables in the long run? output per worker capital per worker he level of investment all of the above 2. Which of the following will cause an increase in output per worker in the long run? an increase in the saving rate areduction in the depreciation rate crease in the stock of human capital llothe above 3. In the absence of technological progress, which of the following remains constant in the steady state equilibrium? investment per worker utut per worker sving per worker llothe above only A andB 4. Suppose, ue to.the efferts of a military conflict that has ended, that a country experiences a large reduction in its capital stock. Assume no other effects of this event on the economy. Which of the following will tend to occur as the economy adjusts to this situation? arelatively low growth rate for some time arelative high growth rate for some time zero growth for some time, followed by a gradually increasing growth rate positive growth, followed by negative growth, and then zero growth one of the aboveExplanation / Answer
An increase in the saving rate will affect which of the following variables in the long run?
answer ...1) all of the above
Explanation.....Increase in the saving rate will affect the output and capital per worker and the investment in the long run.
Which of the following will cause an increase in output per worker in the long run?
answer....1. an increase in the saving rate
In the absence of technologival progress, which of the following remains constant in the steady state quilibrium?
answer....2. output per worker
Explanation.....Where there is no technological progress,no new machines or research is done and the economy state is in steady equilibirum with no changes, there the output of the worker too remains same and constant as the worker will not be able to contribute much.
answer.....2. a relatively low growth rate for some time
Explanation ....When there is a military conflict or emergency in any country, the funds are diverted to that sector where it is needed. Therefore, it affects the industries and the prodcution and overall output of the economy leading to low growth for some time or till it picks up.
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