The necessary ingredients for economic growth and poverty reduction are no mystery, really: education, favorable and efficient institutions, research and development, etc. Macroeconomists are unlikely to have anything useful to say. Comment
What will be an ideal response?
The ingredients are familiar, but implementation is difficult. Citizens, politicians, and policymakers face tough decisions, because each ingredient has costs; resources devoted to education, for example, must mean sacrificing other worthy expenditures, such as health care. Macroeconomists can help to quantify the relative effectiveness of particular expenditures and policy packages, so that scarce resources are utilized efficiently. Analysis and clarification of the details can help in the design of and to generate public support for the most effective policies.
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Government spending has no effect on resource allocation since the government simply engineers a transfer of private goods and services from one group in the economy to some other group
Indicate whether the statement is true or false
The richest 5 percent of the U.S. population holds approximately ______ percent of total U.S. personal savings
a. 10 percent b. 95 percent c. 30 percent d. 50 percent e. 75 percent