If the money supply grows at 6% and the inflation rate is 2%, the quantity theory predicts that the change in real GDP will be
A) 0.33%.
B) 3%.
C) 4%.
D) 8%.
C
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Differences in marginal revenue products among workers can help explain the presence of wage differentials
a. True b. False
Which development strategy involves shifting from production of raw materials to production of manufactured goods?
a. export-led growth b. first-mover advantage c. import substitution d. multiplier effect
Advocates of flexible rates ______.
a. embrace the Bretton Woods system b. argue that flexible rates do not cause inflation c. prefer government control of exchange rates d. believe they can cause currency shortages
Refer to the graph below showing the marginal product (MPL) and the average product of labor (APL). At which quantity of labor employed does diminishing marginal returns set in?
A. A
B. B
C. C
D. D