Consider a Closed Economy in the Long Run

question 72

Multiple Choice

Consider a closed economy in the long run.A country with a low national saving rate (as a fraction of real GDP) is likely to have

• A)a high growth rate because aggregate expenditure will be high out of any given income.
• B)either a high or low growth rate depending on the investment schedule.
• C)an AS curve moving continually to the right.
• D)trouble achieving potential real national income in the short run.
• E)a low growth rate because sustained high investment is not possible with low saving.

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Definitions:

Traditional Role

Established patterns of behavior expected of individuals in specific positions or settings within a cultural or social context.

Priest

A religious leader authorized to perform the sacred rituals of a religion, often acting as an intermediary between humans and one or more deities.

Shaman

A person regarded as having access to, and influence in, the world of good and evil spirits, often within indigenous and tribal societies, performing healings and rituals.

Differences

The state or condition of not being the same; variations between entities in characteristics, qualities, or properties.