Macroeconomics

Indicate if the long run growth of real GDP is likely to increase or decrease. Ceteris Paribus means all else constant.

a. Political unrest lead the government to impose a martial law and to restrict movement of people and goods, Ceteris Paribus.

b. The World Bank decreases the amount of loans available to subsistence farmers, Ceteris Paribus.

c. Quotas on imported goods are imposed, Ceteris Paribus.

d. The government offers tax credits to firms that build new factories, Ceteris Paribus.

e. Colleges around the country witness a major decrease in federal and state funding, Ceteris Paribus.

f. UNICEF puts into place an aggressive (and successful) program to fight hunger and childhood diseases,Ceteris Paribus.