Macroeconomics
Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 27.3, Problem 1RQ
To determine

Identify whether the economic growth results from an increase in the aggregate demand, short-run aggregate supply, or long-run aggregate supply.

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In the very long run, what are the major factors that are responsible for growth in potential output or GDP? Use the production function to support your answer.
For a high-income economy like the United States, what element of the aggregate production function are most important in bringing about growth in per capita GDP? What about the middle-income country such as Brazil? A low-income country such as Niger?
For a high-income economy like Australia, what aggregate production function elements are most important in bringing about growth in GDP per capita? What about a middleincome country such as India? A low-income country such as Afghanistan?
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