Why is it desirable, if possible, to use policy to offset the effects of a decrease in aggregate demand?
Because a decrease in aggregate demand wastes resources. Unemployment rises and factories are idle.
Economics
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Which of the following is NOT an important factor affecting growth in labor productivity?
A) the saving rate B) the speed with which prices fall C) the growth rate of physical capital D) the growth rate of labor productivity
Economics
What are the basic arguments of the classical growth theory?
What will be an ideal response?
Economics