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Author Question: Overall limits on an economy's ability to use capital are its a. absorptive capacity b. budget ... (Read 54 times)

jjjetplane

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on: Jun 30, 2018
Overall limits on an economy's ability to use capital are its
 
  a. absorptive capacity
  b. budget deficit
  c. capital flight
  d. disequilibrium interest rate
  e. all of the above

Question 2

How could the removal of labor market distortions increase employment even if the elasticity of factor substitution is very low?
 
  What will be an ideal response?


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cclemon1

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

Reduce speculative rural-urban migration based on expected wages as in the Todaro model.


jjjetplane

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Reply 2 on: Jun 30, 2018
Gracias!

helenmarkerine

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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