Economic growth as it is currently measured
What will be an ideal response?
-does not account for how increased per capita income is distributed across income groups.
-understates actual economic growth since it does not adjust for changes in leisure.
-does not consider? spiritual, cultural or social difficulties that may arise from growth.
-All of the above
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
What is an indifference curve and how does a preference map show preferences?
What will be an ideal response?
If a country chooses to have a monetary policy oriented toward domestic goals and a fixed exchange rate, then
A) it can have the freedom of international capital movements. B) it cannot have the freedom of international capital movements. C) it cannot balance its current account. D) it cannot have fiscal policy oriented toward domestic goals. E) it cannot control money supply growth.
Total utility is maximized in the consumption of two goods by equating the:
a. prices of both goods for the last dollar spent on each good. b. marginal utilities of both goods for the last dollar spent on each good. c. ratios of marginal utility to the price of both goods for the last dollar spent on each good. d. marginal utility of one good to the price of the other.