Everything else equal, technological change will typically
a. move the economy along a fixed production function, increasing both productivity and output
b. move the economy along a fixed production function, increasing output but lowering productivity
c. cause the production function to shift upward, increasing both output and productivity
d. cause the production function to shift upward, increasing output but lowering productivity
e. cause the production function to shift upward, increasing output but leaving productivity unchanged
C
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If there is no Ricardo-Barro effect, an increase in the budget deficit
A) decreases the amount of investment. B) increases the supply of loanable funds. C) lowers the equilibrium real interest rate. D) increases the amount of investment. E) decreases the demand for loanable funds.
If a consumer purchases only two goods (X and Y ) and the demand for X is elastic, then a rise in the price of X
a. will cause total spending on good Y to rise. b. will cause total spending on good Y to fall. c. will cause total spending on good Y to remain unchanged. d. will have an indeterminate effect on total spending on good Y.
If a household has $40,000 in taxable income and its tax liability is $20,000, the household's average tax rate is
a. 10 percent. b. 25 percent. c. 40 percent. d. 50 percent
If the federal budget deficit is falling, the national debt will
A. be rising at an increasing rate. B. be rising at a decreasing rate. C. remain at the same level. D. be falling at an increasing rate.