Author Question: What do you think would be the Cobb-Douglas single best prescription for poor countries to catch up ... (Read 19 times)

sammy · **on:** Jun 30, 2018

What do you think would be the Cobb-Douglas single best prescription for poor countries to catch up with the rich?

A) to increase their stock of capital
B) to increase their labor force
C) to find more efficient ways to allocate and use capital and labor
D) to ask help of the rich countries
E) none of the above

Question 2

Investment spending ________.

A) is comprised of fixed and inventory investment
B) is negatively related to the real interest rate
C) is heavily influenced by what Keynes coined as animal spirits
D) all of the above
E) none of the above