What would be the effect of each of the following events on actual and potential economic growth? (Assume no other changes take place.) (a) A reduction in the level of investment. Actual growth: rise / fall / no effect Potential growth: rise / fall / no effect (b) People save a larger proportion of their income. Actual growth: rise / fall / no effect Potential growth: rise / fall / no effect (c) A reduction in the working week. Actual growth: rise / fall / no effect Potential growth: rise / fall / no effect (d) Increased expenditure on education and training. Actual growth: rise / fall / no effect Potential growth: rise / fall / no effect (e) The discovery of new, more efficient techniques which could benefit industry generally. Actual growth: rise / fall / no effect Potential growth: rise / fall / no effect (f) A reduction in interest rates. Actual growth: rise / fall / no effect Potential growth: rise / fall / no effect
What would be the effect of each of the following events on actual and potential
(a) A reduction in the level of investment. Actual growth: rise / fall / no effect
Potential growth: rise / fall / no effect
(b) People save a larger proportion of their income. Actual growth: rise / fall / no effect
Potential growth: rise / fall / no effect
(c) A reduction in the working week. Actual growth: rise / fall / no effect
Potential growth: rise / fall / no effect
(d) Increased expenditure on education and training. Actual growth: rise / fall / no effect
Potential growth: rise / fall / no effect
(e) The discovery of new, more efficient techniques which could benefit industry generally.
Actual growth: rise / fall / no effect
Potential growth: rise / fall / no effect
(f) A reduction in interest rates. Actual growth: rise / fall / no effect
Potential growth: rise / fall / no effect
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