Over the past year, productivity grew 1%, capital grew 0%, and labor grew 5%. If the elasticities of output with respect to capital and labor are 0.4 and 0.6, respectively, how much did output grow?
A. 1%
B. 2%
C. 3%
D. 4%
Answer: D
You might also like to view...
If the consumption of a good decreases the quantity available for another person, the good is
A) rival. B) excludable. C) pure. D) free.
Faced with a decrease in the demand for its product, a monopolist will lower prices and maintain output at its previous level if
A) the gain in profit is less than the increase in real wages paid. B) the gain in profit is less than the decrease in real wages paid. C) the gain in profit is less than the menu costs. D) the gain in profit is greater than the increase in menu costs.
Which list ranks assets from most to least liquid?
a. currency, fine art, stocks b. currency, stocks, fine art c. fine art, currency, stocks d. fine art, stocks, currency
From a Keynesian perspective, the way out of a recession includes an increase in government spending, a tax cut, or an increase in transfer payments.
Answer the following statement true (T) or false (F)