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

Question

Emmett Haynes

Business

20 March, 16:40

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

+2

Answers (1)

Know the Answer?

Leonard Wolfe · Answer 1

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.

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 runa. Trueb. False

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