Author Question: The Cold War was of overriding importance during the period after World War II for all of the ... (Read 67 times)

a0266361136 · **on:** Jun 30, 2018

The Cold War was of overriding importance during the period after World War II for all of the following reasons except

(a) It was an automatic pump primer which helped keep spending levels high in the overall economy.
(b) It helped fuel growth of key sectors of the economy, such as aircraft manufacturing and computers.
(c) It fostered economic growth and urbanization in many parts of the nation where military bases and defense factories were built.
(d) It put people to work who would otherwise have been unemployed because without high levels of defense spending, the economy almost certainly would have lapsed back into a depression like the one of the 1930s.

Question 2

If an economy is growing at 2 percent a year but its rate of technology growth is 1 percent a year, then this country must be:

a. below its steady state level of capital per worker.
b. expected to grow slower in the future.
c. has a savings rate that is too low.
d. none of the above.