Suppose that Freedonia has GDP equal to 2000 million, the capital stock is 1700 million, and the number of employees equals 70 million. The production function is Y = AK0.25N0.75. Total factor productivity of the economy is approximately equal to
A) 0.09.
B) 2.61.
C) 4.19.
D) 12.87.
D
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What is the total market supply, Qs, for luxury sports cars in the United States if the only three suppliers inverse supply functions are P = -10 + 5Qs1, P = 20 + 5Qs2, P = 5Qs3?
A) P = 10 + 21Qs B) Qs = -2 +P/15 C) Qs = 6 + P/15 D) Qs = -2 + P/15
A financial innovation that developed as a result of banks avoidance of bank branching restrictions was
A) money market mutual funds. B) commercial paper. C) junk bonds. D) bank holding companies.
In the development of the IS curve, one variable that turns from exogenous to endogenous is
A) the interest rate. B) the price level. C) consumption. D) saving. E) investment.
The equilibrium rate of interest is determined by
A. The U.S. Treasury. B. The president of the Federal Reserve Bank of New York. C. The Federal Closed Market Committee. D. Money demand and money supply.