Use the table below to answer this question. The data show national savings rates as a percentage of GDP; the growth rate of real GDP per person; and birth rates in 2006.
$$\begin{array} { | l | c | l | l | }
\hline \text { Country } & \begin{array} { c }
\text { National Saving } \
\text { (\% of GDP) }
\end{array} & \begin{array} { l }
\text { Growth rate of } \
\text { real GDP per } \
\text { person }
\end{array} & \text { Birth Rate } \
\hline \text { Japan } & 28 & 1.6 & 9.96 \
\hline \text { Canada } & 24 & 2.6 & 11.4 \
\hline \text { Germany } & 23 & 1.9 & 9.35 \
\hline \text { U.S. } & 14 & 1.9 & 14.2 \
\hline
\end{array}$$
If the data support the neoclassical growth theory, we would expect to see

Question

Use the table below to answer this question. The data show national savings rates as a percentage of GDP; the growth rate of real GDP per person; and birth rates in 2006.
$$\begin{array} { | l | c | l | l | } 
\hline \text { Country } & \begin{array} { c } 
\text { National Saving } \
\text { (\% of GDP) }
\end{array} & \begin{array} { l } 
\text { Growth rate of } \
\text { real GDP per } \
\text { person }
\end{array} & \text { Birth Rate } \
\hline \text { Japan } & 28 & 1.6 & 9.96 \
\hline \text { Canada } & 24 & 2.6 & 11.4 \
\hline \text { Germany } & 23 & 1.9 & 9.35 \
\hline \text { U.S. } & 14 & 1.9 & 14.2 \
\hline
\end{array}$$
If the data support the neoclassical growth theory, we would expect to see

Quizplus · Accepted Answer

The neoclassical growth theory suggests that a higher saving rate leads to a higher capital stock, which in turn leads to a higher economic growth rate. Japan has the highest saving rate among the countries listed, so we would expect it to have the highest economic growth rate.

Use the Table Below to Answer This Question If the Data Support the Neoclassical Growth Theory, We Would