Question

575/2000 stion 20 of 20> Many economists think that long-run economic growth is important for the welfare of a nation. Classify the statements below regarding long-run economic growth as true or false. True False growth in the last 100 years than occurred

Answer 1

Answer:

Question:

True	False
There has been more long run economic growth in the last 100 years than occurred between the years 1000 and 1700	An economy that has experienced long run economic growth has avoided painful recessions
Long run economic growth is often a result of increases in productivity	A nation with a Shrinking population cannot experience long run economic growth
Long run economic growth can be measured with per capita GDP	Long run economic growth is often a direct result of expansionary monetary policy

Question:

Work against convergence	Support convergence
unlimited technological innovation	diminishing returns to physical capital diminishing returns to human capital easy technology adoption across countries

No effect on convergence = democracy, the World Cup, quantity of physical capital in developing countries.

Here the factors that increases the productivity of developing countries and factors which hampers the development of developed nations contributes to convergence.