Explain the two relations that determine the evolution of output in the long run

What will be an ideal response?

The amount of capital determines the amount of output being produced. The amount of output determines the amount of saving and in turn, the amount of capital being accumulated over time.

Economics

You might also like to view...

Government ownership of industries is quite uncommon

a. True b. False

Economics

First, what can be done to increase central bank credibility? Second, why is central bank credibility important?

What will be an ideal response?

Economics