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Author Question: Technological progress directly raises output, but also slows capital deepening. Indicate whether ... (Read 62 times)

bobthebuilder

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on: Jun 30, 2018
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?
Macroeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 7th Edition
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Jsherida

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Reply #1 on: Jun 30, 2018
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.


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