In the model where it is assumed that the state of technology does not change, what parameters and/or variables cause changes in steady state output per worker
What will be an ideal response?
In general, output per worker will depend on the capital-labor ratio. The equilibrium capital-labor ratio will depend on the saving rate and on the rate of depreciation. Output will also depend on the amount of human capital per worker. So, changes in s, ?, and H will cause changes in output per worker.
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In the cigarette industry either R. J. Reynolds or Phillip Morris, for a time, raised prices twice a year by about 50 cents per carton. The other firms in the industry raised their prices by the same amount. Economists call this
A. predatory pricing. B. a price war. C. price leadership. D. sales maximization.
The vertical axis of the aggregate demand and aggregate supply graph has the
a) output of goods. b) output of services. c) real GDP. d) the price level.
What does it mean to have an absolute advantage in the production of two goods?
What will be an ideal response?
An American insurance company hires a call center in India to handle customer service calls in order to cut costs. Other things equal, this will ________ of the United States
A) decrease the financial account balance B) decrease net exports C) decrease the capital account balance D) increase the current account balance