Classical growth theory proposes that real GDP growth is ________ and that real GDP per person will ________ the subsistence level
A) permanent; temporarily be above
B) permanent; always be above
C) temporary; temporarily be above
D) temporary; be above and below
C
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Consumers will always pay the entire amount of a specific tax whenever
A) demand is perfectly inelastic. B) supply is perfectly elastic. C) Both A and B above. D) Either A or B above but not at the same time.
Between 1860 and 1910, value added by the top ten manufactures roughly
a. doubled. b. tripled. c. increased by 500% (a factor of five). d. increased by 1000% (a factor of ten).
A monetary policy that reduces both real and nominal income:
A. cannot be expansionary or contractionary. B. must be contractionary. C. must be expansionary. D. could be expansionary or contractionary.
Economic takeoff:
A. occurs when development becomes self-sustaining. B. will eventually occur in all developing countries. C. typically occurs in the absence of foreign investment. D. has yet to occur in any developing country.