Economics

Explain how the “new growth theory” treats technology differently from

Explain how the “new growth theory” treats technology differently from the way economists used to treat technology. What will be an ideal response?   ANSWER Technology used to be treated as an outside factor of growth that could not be explained itself. The new growth theory includes technology as another factor of production and argues […]

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Date: September 2nd, 2020

An increase in total planned real expenditures that is caused by a fac

An increase in total planned real expenditures that is caused by a factor other than the price level will lead to the A) aggregate demand curve shifting to the right. B) aggregate demand curve shifting to the left. C) aggregate supply curve shifting to the left. D) aggregate supply curve shifting to the right.   […]

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Date: September 2nd, 2020

The supporters of a proposal to increase marginal taxes on those earni

The supporters of a proposal to increase marginal taxes on those earning over $200,000 a year say this change would generate $100 billion in new tax revenues. A supply-side economist would argue that the actual revenue raised will be A) exactly $100 billion because there are no offsetting factors to a tax increase. B) more […]

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Date: September 2nd, 2020