Which of the events listed above could cause a movement from Y to W?
Consider the following events
a. an increase in the unemployment rate
b. a decrease in a nation's money supply
c. a war that kills a significant portion of a nation's population
A. a and c only
B. a and b only
C. c only
D. a only
E, a, b and c
Answer: C. c only
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Assume:
C = 40 + 0.8(Y - T) G = 10 I = 20 T = 0, where T are taxes. (a) Calculate Y at equilibrium. (b) Calculate C, I, and G at equilibrium. (c) Now assume, EX = 5 + 4EP /P IM = 10 + 0.1 (Y - T) - 3EP /P E = 3 P = 1.5 P = 2 Find equilibrium Y.
Given the production function q = 4L + K, what is the marginal product of labor when capital is fixed at 50?
A) 54 B) 4 C) 50 D) 250
Given a production possibilities curve, a point:
a. inside the curve represents unemployment. b. on the curve represents full employment. c. outside the curve is currently unattainable. d. all of these.
Which of the following could lead to a decrease in worker productivity?
a. An increase in the physical capital stock b. A decrease in the number of workers c. A war that destroys an enormous amount of plant and equipment d. An increase in the physical capital stock e. A decrease in the human capital stock