Our model of long-run economic growth suggests that
A)the U.S. growth slowdown since 1950 has been caused largely by low saving in the U.S.
B)a higher rate of saving in the U.S. cannot do much to increase the U.S. growth rate over the next two decades.
C)saving in the U.S. has exceeded the golden-rule level.
D)all of the above
E) none of the above

Question

Quizplus · Accepted Answer

The model of long-run economic growth does not necessarily suggest that the U.S. growth slowdown since 1950 is largely due to low saving, nor does it imply that a higher saving rate cannot significantly impact growth over the next two decades. Additionally, it does not assert that U.S. saving has exceeded the golden-rule level. These statements oversimplify the complex factors influencing long-run economic growth, such as technological innovation, labor force growth, and institutional factors, among others.

Our Model of Long-Run Economic Growth Suggests That