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26 November, 02:10

A small change in the rate of productivity growth will have a large impact on output in the short run but a small impact in the long run

a. True

b. False

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Answers (1)
  1. 26 November, 05:44
    0
    False A change in productivity growth is similar to compounded interest. A small change has a small effect in the short run because it is a small change. However as time goes on the effect accumulates and the difference "compounds" upon itself.
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