Question: Use TABLE ONE to show the difference it makes, in the long run, if a particular level of output relies more on increased capital
Use TABLE ONE to show the difference it makes, in the long run, if a particular level of output relies more on increased capital stock than on a higher level of technology. The table shows the lower real interest rate and lower nominal exchange rate. Y=C+I+G+ NX I=S-NX lower (). higher (1), no difference is implied by the scenarios = not different (ND), or difference is implied, but not enough information (??). TABLE ONE C I EX IM w is the real wage. MPx is the marginal product of capital E " NX i E is the nominal exchange rate. W S A MPK
Step by Step Solution
There are 3 Steps involved in it
To analyze the difference in the long run if a particular level of output relies more on increased capital stock than on a higher level of technology ... View full answer
Get step-by-step solutions from verified subject matter experts
