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Macro Economic Questions
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This 13 page paper answers the following questions; 1. Will an increase in government spending in a closed economy contribute to crowding out in the private sector? 2. Can fiscal policy be an effective method of influencing short run levels of output if the investment demand curve is elastic? 3. Can there only be gains from trade between two countries if one of them has a higher productivity in all goods? 4. Will an increase in aggregate demand produce a permanent in the rate of long term economic growth? 5. Will a Philips curve shift in response to a change in inflationary expectations. The paper then discuses the following statements; “There will be no increase in the long term rate of economic growth resulting from an increase in the savings rate”, “The faster the rate of technical progress, the higher will be the rate of economic growth” and “Once the public sector accounts for 30% of GDP, further expansion is damaging to the rate of economic growth”. The bibliography cites 6 sources.
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Pages:
13
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Filename:TS14_TEcrowdqs.rtf |
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Paper Title:
Macro Economic Questions
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