What will happen to the annual rate of growth of per capita real GDP if the annual rate of population growth increases and the annual rate of growth of real GDP goes down?
A) It will increase since an increase in population means an increase in labor that translates into an increase in real GDP.
B) It will increase since the annual rate of growth of real GDP does not influence the growth rate of per capita real GDP.
C) It will decrease since an increase in the growth rate of population and a decrease in the growth rate of real GDP both work to decrease the growth of per capita real GDP.
D) The effect will depend upon whether the rate of population growth is greater than or less than the rate of growth of real GDP.
C
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Refer to Figure 24-1. Ceteris paribus, a decrease in personal income taxes would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
The teal book is the Fed research document containing
A) the forecast of national economic variables for the next three years. B) forecasts of the money aggregates conditional on different monetary policy stances. C) information on the state of the economy in each Federal Reserve district. D) both A and B. E) A, B and C.
Which of the following market models results in the highest level of consumer surplus assuming a fixed number of firms with identical costs and a given demand curve?
A) Cournot B) Stackelberg C) Monopoly D) Cartel
Two goods are considered substitutes only if a(n)
a. decrease in the demand for one leads to a decrease in the supply of the other b. increase in the demand for one leads to a decrease in the supply of the other c. increase in the price of one leads to an increase in the demand for the other d. decrease in the price of one leads to an increase in the demand for the other e. decrease in the supply of one leads producers to switch to production of the other