Some one write my comments for my discussion they say he’s not agree for my discussions. Pleaeee can u help me what I will respond him. Thank you. . 1. If the economy were close to high potential output, would policymakers present their policy prescriptions to increase real output any differently than if the economy were far from potential output? Why?Potential output of an economy is the maximum amount of goods and services an economy can produce when it is at its most efficient that is to say it is at full capacity. When the economy is at close to high potential output, policymakers will present their policy prescription of increasing real output differently than if the economy were far from potential output. This is because the output gaps of the two economies are different in the two scenarios. The output gap is the difference between the actual output of an economy and its potential output. A close to the high potential economy will, therefore, increase their output differently compared to a far to economic potential. In closing, the difference in policymaker’s prescription in the two scenarios is due to the difference in the output gap.2. Have the poor benefited more or less from economic growth than the rich?The poor benefited less compared to the rich from economic growth due to the capitalist nature of the economy. The rich will continue to get richer while the poor get poor. This is due to inequalities created by economic growth especially wealth inequality making the poor to benefit less. Economic growth increases wealth to the rich who are capable of large investments leading to more wealth. The poor will continue to work and earns a low income thereby income inequality will creep in with the consideration of economic growth. some one comments my post. ( peers comments ) I disagree with your statement in your answer to question two that the rich get richer and the poor get poorer. The only scenario where that happens is in a crony capitalist/socialist system. In a free market the effect of economic growth both benefits the rich and the poor. The rich get richer and the poor get richer. The best example would be the smartphone. As a result of the innovation that created the smartphone the rich got richer and the wealth gap increased. However, the average poor person now can afford to have a smartphone in their pocket that is a massive addition to their standard of living.
Some one write my comments for my discussion they say he’s not agree for my discussions. Thank you.
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