Discuss how the level of output per person in the long run would likely be afect

Question

Discuss how the level of output per person in the long run would likely be afected by each of the following changes The right to exclude saving from income when paying income taxes This wouldthe saving rate, leading to output per worker and output per person in the long run. O A. increase; lower OB. increase, higher O C. decrease; lower OD, decrease; higher A higher rate of female participation in the labor market (but constant population). This would the level of output per worker, leading to a level of output per person Click to select your answer 1983984663 ioe

Explanation / Answer

1) Solution: increase, higher

Explanation: This would likely result to a higher saving rate, thus output per worker and output per person would increase in the long run (the saving curve shifting up).

2) Solution: having no effect on, higher

Explanation: We are assuming a rise in female participation as a one-time increase in employed labor. In such scenario, an increase in female participation would have no effect on the level of output per worker, however results to a higher level of output per person, because higher fraction of the population would be employed

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