2. a) Why is the difference between 2% and 3% steady yearly real GDP growth in the US economy a huge difference, if its only a difference of 1%? b) Explain why productivity is so essential for growth of the economy. c) What are two government policies that could increase US economic productivity? d) What is the role of Investment in contributing to productivity?

2. a) Why is the difference between 2% and 3% steady yearly real GDP growth in the US economy a huge difference, if its only a difference of 1%? b) Explain why productivity is so essential for growth of the economy. c) What are two government policies that could increase US economic productivity? d) What is the role of Investment in contributing to productivity?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter7: Economic Growth: Theory And Policy

Section: Chapter Questions

Problem 2TY

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2. a) Why is the difference between 2% and 3% steady yearly real GDP growth in the
US economy a huge difference, if its only a difference of 1%?
b) Explain why productivity is so essential for growth of the economy.
c) What are two government policies that could increase US economic productivity?
d) What is the role of Investment in contributing to productivity?

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