Which of the following statements is true? A) The growth rate of South Korea has been less than the growth rate of the United States over the last 40 years. B) The United States and the United Kingdom have recorded a growth rate of over 10% per annum in the last 40 years. C) The […]
Date: September 2nd, 2020
“In the classical model, the equilibrium level of real Gross Domestic Product (GDP) is completely supply-determined.” Do you agree or disagree? Why? What will be an ideal response? ANSWER Agree. The long-run aggregate supply curve is vertical, so the equilibrium level of real Gross Domestic Product (GDP) is determined by the location of the […]
Date: September 2nd, 2020
In the above table, saving is positive when real disposable income is greater than A) $300. B) $100. C) zero. D) $500. ANSWER D
Date: September 2nd, 2020
Refer to the above figure. Suppose the relevant aggregate demand curve is AD2. If the government wants to use fiscal policy to close the existing gap, it should A) increase government spending. B) increase taxes. C) increase the money supply. D) decrease taxes. ANSWER B
Date: September 2nd, 2020
A growth process whereby relatively poorer nations increase their income by taking advantage of knowledge and technologies already invented in other, technologically more advanced countries is referred to as: A) trade-based growth. B) transfer growth. C) innovative growth. D) catch-up growth. ANSWER D
Date: September 2nd, 2020
As a unit of account, money is used A) to hold purchasing power over time. B) to define prices of all other goods. C) to pay off future debts. D) to exchange for goods and services. ANSWER B
Date: September 2nd, 2020
Assume that a house is rented by four students. When it comes to keeping the house clean, each of the four roommates has an incentive to leave cleaning to the others. As a result, the house is never clean. Which of the following is the best solution to this problem of free riding? A) Assign […]
Date: September 2nd, 2020
In the above table, saving equals zero when real disposable income equals A) $500. B) $0. C) $200. D) $300. ANSWER A
Date: September 2nd, 2020
The new growth theory of economic growth examines the interaction of A) regulations and capital expansion. B) technology, research, and innovation. C) resources and labor productivity. D) labor and population. ANSWER B
Date: September 2nd, 2020
Singapore had a GDP per capita of $395 in 1960, and $52,918 in 2013. The U.S had a GDP per capita of $2,881 in 1960 and $52,839 in 2013. Such a growth is referred to as: A) instant growth. B) disguised growth. C) catch-up growth. D) sustained growth. ANSWER C
Date: September 2nd, 2020
