Discuss the convergence hypothesis and do you believe that in the long run there will be a narrowing of the differences in real GDP per capita in all countries.
3 answers
I believe that there are people who want to create a one world government. And there aim is to bring all economies to the same level. This is what is happening in our country the USA. It is a deliberate attempt to bring us down.
Explain why savings must equal investment spending. What government policy could be used to increase the national savings rate and how this would impact investment spending?
With respect to the convergence hypothesis:
http://econc10.bu.edu/economic_systems/Lecture_notes/Introduction/intro_types_convergence_lg.htm
with respect to S=I,
GNP is the value of everything we produce GNP=C+I. (Ignore government expenditures or net exports for now). GNP is also the value income of a country. With income, you can either consume it or save it. So, GNP=C+S.
Thus, you have C+I=GNP=C+S. Ergo, I=S.
http://econc10.bu.edu/economic_systems/Lecture_notes/Introduction/intro_types_convergence_lg.htm
with respect to S=I,
GNP is the value of everything we produce GNP=C+I. (Ignore government expenditures or net exports for now). GNP is also the value income of a country. With income, you can either consume it or save it. So, GNP=C+S.
Thus, you have C+I=GNP=C+S. Ergo, I=S.
1 answer