If the saving rate increases, a country's growth rate of real GDP per hour of labor and capital per hour of labor .

Question

Quizplus · Accepted Answer

If the saving rate increases, there will be more investment in capital per hour of labor, which can lead to an increase in real GDP per hour of labor. Additionally, higher saving rates can also lead to more research and development, which can improve labor productivity and further increase real GDP per hour of labor.

If the Saving Rate Increases, a Country's Growth Rate of Real