Use TABLE ONE to show the difference it makes, in the long run, if a particular...

  

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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 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

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