What is the effect on the standard of living (Y/L) of increased research and development (R&D)? Up,...
What is the effect on the standard of living (Y/L) of increased research and development (R&D)? Up, Down, or Same?
Homework Answers
Up
Standard of living at is also called GDP per capita
GDP per capita is the GDP divided by total population of the economy
For any country whether it is developing or developed resources and development play a very crucial role
It is the the activity that includes the innovation of new product and services which is helpful for the mankind
So whenever there is increase in the research and development, it will always boost up the GDP per capita as well
GDP main components are expenditure, consumption, government spending and net export
If there is a good research and development then it will boost more production and ultimately lead to more export
It will also help in boosting the consumption
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What is the effect on the standard of living (Y/L) of increased
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