How can a country experience economic growth and stable prices?
What will be an ideal response?
A country can experience economic growth and stable prices if aggregate supply and aggregate demand increase by the same amount. The new equilibrium then is at the same price level, but real GDP is higher.
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Which of the following is an example of a good produced under monopoly?
A) CDs B) Books C) Aerated drinks D) Patented software
Under exchange-rate targeting, the central bank in the targeting country ________ lose the ability to pursue its own independent monetary policy and any shocks to the anchor country is ________ transmitted to the targeting country
A) does; directly B) does not; directly C) does; not directly D) does not; not directly
Identify the correct statement from the following
a. A worker's wage line and productivity line over his lifetime are parallel to each other. b. The wage line of a worker's lifespan is an upward sloping straight line. c. The productivity line of a worker's lifespan rises at a decreasing rate. d. A worker's wage is always equal to his productivity.
If it takes you an hour to make a rational decision and the opportunity cost of that hour is $100, you will:
A. always make rational decisions. B. make rational decisions only if the benefit from doing so is less than $100. C. make rational decisions only if the benefit from doing so exceeds $100. D. never make rational decisions.