EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 9780100605930
Author: Blinder
Publisher: YUZU
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Question
Chapter 23, Problem 1DQ
To determine
The effect of an earthquake on the potential
Expert Solution & Answer
Explanation of Solution
The distortion of factories in the poorland due to an earthquake will reduce the national output of the poorland. This would reduce the potential GDP of the poorland. The acquisition of advanced technology from a rich land will boost the poor land’s productive capacity and thereby increase the potential GDP.
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Chapter 23 Solutions
EBK ECONOMICS: PRINCIPLES AND POLICY
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