Refer to the information provided in Figure 26.6 below to answer the question(s) that follow.
Figure 26.6Refer to Figure 26.6. Suppose the equilibrium output is initially $600 billion. A decrease in the Z factors ________ equilibrium output and ________ the price level.
A. decreases; leaves unchanged
B. increases; increases
C. leaves unchanged; increases
D. increases; decreases
Answer: B
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Which of the following statements is true?
A) Cultural and geographical conditions of a nation can be considered proximate causes of prosperity. B) Stock of human capital and the geography of a nation can be considered fundamental causes of prosperity. C) Stock of human capital and physical capital available to a nation can be considered proximate causes of prosperity. D) Stock of human capital and the geography of a nation can be considered proximate causes of prosperity.
The main reason for the rising market value of corporate stock is
A) falling interest rates. B) changes in tax laws. C) increases in the prices of existing stock. D) the increased supply of new stock.
In a model of the saving rate, which of these relationships is most crucial?
A) the effect of the saving rate on government spending B) the effect of government spending on the saving rate C) the effect of the saving rate on taxes D) the effect of taxes on the saving rate E) the effect of the saving rate on the real wage
According to the rule of 70, a country will double its real GDP per capita in 10 years if it:
A. experiences a 7 percent growth rate in per-capita GDP. B. has inflation of 7 percent. C. has a population growth rate of 7 percent. D. None of these is true.