Based on an analysis of macroeconomic outcomes under Republican ...

[torybrooks]

Based on an analysis of macroeconomic outcomes under Republican and Democratic administrations, we would expect which of the following to occur?
 
  A) Growth rates to be generally higher under Republican administrations.
  B) Macroeconomic policy to be relatively contractionary under Democratic administrations.
  C) Unemployment rates to be generally higher under Democratic administrations.
  D) Inflation rates to be generally lower under Democratic administrations.
  E) none of the above

Question 2

Suppose there is a decrease in the saving rate. Explain what effect this decrease in the saving rate will have on the rate of growth of output per worker.
 
  What will be an ideal response?

[Awesome]

Answer to Question 1

E

Answer to Question 2

As described in answers for the previous chapter, a reduction in the saving rate will only temporarily affect the growth rates of Y and Y/N. Once the new balanced growth equilibrium is achieved, the growth rates of Y and Y/N will return to their original levels.

[torybrooks]

Thank you

[Awesome]

Happy to help you