Investment and consumptions and its effect on economic growth .

Question

Suppose that society decided to reduce consumption and increase investment. i. How would this change affect economic growth? ii. What groups in society would benefit from this change? iii. What groups might be hurt?

Answer 1

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 17, Problem 2PA

Subpart (a):

To determine

Investment and consumptions and its effect on economic growth.

Subpart (b):

To determine

Investment and consumptions and its effect on economic growth.

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Suppose that society decided to reduce consumption and increase investment. i. How would this change affect economic growth? ii. What groups in society would benefit from this change? iii. What groups might be hurt?

A. How is economic growth measured? B. Why is economic growth important? C. If a country's economy grows at an average rate of 14 percent per year, how many years would it take to double?

Answer d only a. What are the ways in which a government policymaker can try to raise the growth in living standards in a society? b. What is the relevance of productive and allocative efficiency to the growth process? c. What is meant by economies of scale and what is the importance of this concept to economic growth? d. Suppose that society decided to reduce consumption and increase investment.i. How would this change affect economic growth? ii. What groups in society would benefit from this change? iii. What groups might be hurt?

Answer 2

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 17, Problem 2PA

Subpart (a):

To determine

Investment and consumptions and its effect on economic growth.

Subpart (b):

To determine

Investment and consumptions and its effect on economic growth.

Expert Solution & Answer

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Check out sample textbook solution

Answer 3

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 17, Problem 2PA

Subpart (a):

To determine

Investment and consumptions and its effect on economic growth.

Subpart (b):

To determine

Investment and consumptions and its effect on economic growth.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 4

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 17, Problem 2PA

Subpart (a):

To determine