State whether you agree or disagree or partially agree with the following statements and justify your answers. A. “According to the Exogenous growth model, a lower savings rate will eventually lead to a lower living standards and permanently lower growth rate. B. According to the New Keynesians, it is possible to have a costless disinflation. C. A lower population growth will eventually lead to lower level of GDP and living standards
State whether you agree or disagree or partially agree with the following statements and justify your answers. A. “According to the Exogenous growth model, a lower savings rate will eventually lead to a lower living standards and permanently lower growth rate. B. According to the New Keynesians, it is possible to have a costless disinflation. C. A lower population growth will eventually lead to lower level of GDP and living standards
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. State whether you agree or disagree or partially agree with the following statements and justify your answers.
A. “According to the Exogenous growth model, a lower savings rate will eventually lead to a lower living standards and permanently lower growth rate.
B. According to the New Keynesians, it is possible to have a costless disinflation.
C. A lower population growth will eventually lead to lower level of GDP and living standards
D. According to New Classical view of the mark 2 version, short-run fluctuations in actual real GDP are primarily caused by the demand-side factors.
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