Given the production function Y = A and fixed values for the saving rate and depreciation, if productivity is growing at an average rate of three percent, and the labor input grows at two percent, there is a unique growth rate of capital that is sustainable. That is, if the growth rate of capital is […]
Date: September 10th, 2020
In the classical system, the quantity of money a. determines the price level and, for a given real income, the level of nominal income. b. does not affect the equilibrium values of output, employment, and the interest rate. c. affects the equilibrium values of output, employment, and the interest rate. d. Both a and b […]
Date: September 10th, 2020
According to new Keyneisan theory, real wages are _____ correlated with employment and the portion of the population that is not in the labor market _____ with higher real wages. a. positively; rises. b. negatively, does not change. c. negatively, rises. d. positively; falls. e. none of the above. ANSWER B
Date: September 10th, 2020
In the case of an increase in government spending where the price level varies while the money wage is fixed, output a. rises and prices fall by more than if the price level was fixed. b. falls and price rise by more than if the price level was fixed. c. rises by more and the […]
Date: September 10th, 2020
The value of labor is in skill, effort and knowledge. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The rule of caveat emptor (a) is the supreme rule throughout our economy today. (b) still exists, but only outside of the extensive framework of government regulations of business. (c) is essentially the only rule with regard to buying and selling in our economy that is consistent with the concepts of freedom and liberty enshrined […]
Date: September 10th, 2020
If the contribution from capital growth equals 3 percent and the contribution from productivity growth equals 1.6 percent, GDP will grow by ________. A) 1.6 percent B) 4.6 percent C) 4.8 percent D) an unknown value ANSWER D
Date: September 10th, 2020
Hyperinflation is a period of time when a. people “hoard” their money. b. the price level explodes and the money supply decreases. c. both the price level and taxes explode. d. inflation is greater than 1,000%. e. the price level rises faster than the money supply. ANSWER D
Date: September 10th, 2020
In the IS-LM model, the implicit assumption made about aggregate supply was that the a. aggregate supply schedule was vertical because prices were flexible. b. aggregate supply schedule was horizontal because prices were fixed. c. aggregate supply schedule was upward sloping to the right because wages and prices were fixed. d. supply of output was […]
Date: September 10th, 2020
The English system of market overt and fairs (a) were initially transferred to American shores where goods and services could be bought and sold legally without an official witness (b) flourished in the late colonial economy because of their foundation of protective regulations. (c) replaced the rule of caveat emptor in colonial America because they […]
Date: September 10th, 2020
