A striking conclusion of the Solow model is that in the absence of productivity growth, in the long run
A. consumption per worker equals the capital stock per worker.
B. the economy reaches a steady state.
C. consumption per worker equals output per worker.
D. consumption per worker equals investment per worker.
Answer: B
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Shaniq buys only soda and pizza and is buying the amounts that maximize her utility. The marginal utility from a soda is 30 and the price of a soda is $2. The marginal utility from a slice of pizza is also 30. The price of a slice of pizza must be
A) $30. B) $2. C) $1. D) some amount that cannot be calculated without more information.
Social Security is an important example of a portable benefit that follows the worker, no matter who their employer is.
Answer the following statement true (T) or false (F)
Keynes believed that a market-driven economy was inherently unstable.
Answer the following statement true (T) or false (F)