Technological progress directly raises output, but also slows ...

[bobthebuilder]

Technological progress directly raises output, but also slows capital deepening.
 
  Indicate whether the statement is true or false

Question 2

Explain why it is difficult to determine expected real rates of interest.
 
  What will be an ideal response?

[Jsherida]

Answer to Question 1

FALSE

Answer to Question 2

It is difficult to determine expected real rates of interest because we never know exactly what inflation rates people anticipate. One approach is to use the judgments of professional forecasters, such as those that appear in The Economist magazine.