If increased investment (using current technology) does not lead to increased long-run economic growth, does it bring any benefits?
Answer to relevant QuestionsWhat determines the rate of depreciation? What would happen if the rate of depreciation fell?Define demand-side and supply-side policies. Sometimes it is said that Keynesians advocate demand-side policies and monetarists advocate supply-side policies. Is there any accuracy in this statement?What are the arguments for and against relying entirely on discretionary regional and urban policy?Compare the relative effectiveness of fiscal and monetary policy under (a) fixed; (b) free-floating exchange rates. How is the effectiveness influenced by the elasticity of supply of international finance?Did the exchange rate difficulties experienced by countries under the ERM strengthen or weaken the arguments for progressing to a single European currency?
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