Economic growth rates in follower countries:
A. tend to be lower than in leader countries because labor forces in follower countries are too
small.
B. tend to exceed those in leader countries because followers can cheaply adopt the new
technologies that leaders developed at relatively high costs.
C. will never bring real GDP per capita up to the same levels as in leader countries, even if
follower growth rates are greater than those in leader countries.
D. typically average about 2 percent per year.
B. tend to exceed those in leader countries because followers can cheaply adopt the new
You might also like to view...
For each of the following changes, which equilibrium curve (IS, LM, or FE) is shifted? Draw the change in the underlying demand or supply curves (for example, money demand and supply for the LM curve) and show how the equilibrium curve changes
(a) Expected inflation increases. (b) The future marginal productivity of capital increases. (c) Labor supply decreases. (d) Future income declines. (e) There's a temporary beneficial supply shock. (f) The nominal interest rate on money rises.
A hypothesis is: a. a normative economic statement
b. a testable proposition. c. a statement that cannot be evaluated using real-world data. d. a model with no connection to the real world.