In the Solow model, if total saving exceeds depreciation,
A) gross investment is negative. B) real wages decrease.
C) capital deepening stops. D) capital stock increases.
D
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Refer to Scenario 1 . If you start the course in such a way that each exam score is better than your previous average what should happen to your average score? What would happen to your average if it was below your previous exam score? Explain
What will be an ideal response?
Suppose a competitive firm is paying a wage of $12 an hour and sells its product at $3 per unit. Assume that labor is the only input. If the last worker hired increases output by three units per hour, then to maximize profits the firm should
A) hire additional workers. B) not change the number of workers it currently hires. C) lay off some of its workers. D) There is not enough information to answer the question.
The lon-run aggregate supply curve can be expressed by
A) output as a function of potential output. B) inflation as a function of past inflation. C) inflation as a function of past inflation and output gap. D) output as a function of inflation and output gap.
If borrowers and lenders expect a higher rate of inflation,
a. nominal interest rates will tend to fall. b. real interest rates will tend to fall. c. nominal interest rates will tend to rise. d. real interest rates will tend to rise.