Chapter 29: Problem 962
Is there any difference between growth and development?
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Key Concepts
These are the key concepts you need to understand to accurately answer the question.
Chapter 29: Problem 962
Is there any difference between growth and development?
These are the key concepts you need to understand to accurately answer the question.
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Get started for freeIn highly centralized, socialist countries, the government can decide directly how much capital accumulation there will be. In capitalist countries, the government can only influence the rate of capital accumulation indirectly. Describe some measures the government of a capitalist country can take if it wants to increase the rate of capital accumulation.
Given a fixed amount of natural resources, the Law of Diminishing Returns would indicate that capital accumulation and population growth could not by themselves prevent the eventual emergence of a non-growth state. Cite several factors which could offset the Law of Diminishing Returns.
Given that the aim of growth is to increase per capita consumption, is it possible for there to be too much investment?
What does the Harrod-Domar model, taken with the Keynesian theory of savings, imply for the growth rates of poor countries?
Technological innovation has been one of the most important causes of economic growth. Explain what embodied technological progress is and discuss its relationship to capital accumulation.
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