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Suppose There Is a Reduction in the Saving Rate

question 50

Essay

Suppose there is a reduction in the saving rate.Explain what effect this will have on output,output per worker,the rate of growth of output,and the rate of growth of output per worker.


Definitions:

Perseverance

Persistent determination to continue with a course of action in spite of difficulties, obstacles, or previous failures.

Resilience

The capacity to recover quickly from difficulties; toughness.

Empathy

The capacity to understand or feel what another person is experiencing from within their frame of reference.

Sisu

A Finnish concept referring to a unique form of resilience or courage in the face of adversity.

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