Question
Which of the following statements are true, false or unclear? Give a brief explanation of each. a. Despite the Great Recession, US production was greater
Which of the following statements are true, false or unclear? Give a brief explanation of each.
a. Despite the Great Recession, US production was greater in 1940 than in 1929.
b. On a logarithmic scale, a variable that increases by 5% each year falls along a straight line with a slope of 0.05.
c. The price of food is higher in poor countries than in rich ones.i.e. In most countries of the world, production per capita converges to the level of per capita production in the US.
e. For most of human history, each increase in production has resulted in a proportionate increase in population and therefore stagnant production per capita.
f. Capital accumulation does not affect the level of output in the long run. Only technical progress can do that.
G. The aggregate production function is a relationship of production on the one hand and labor and capital on the other.
H. The growth process will have to come to an end, because ultimately we will know everything.
i. Satisfaction increases with increasing production per capita. This is empirically confirmed.
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