Which of the following would contribute to a sustained high rate of economic growth in the long run in an economy?
A) an influx of immigrant labor into an economy without any accompanying technological change
B) a shift of workers in the economy from the agricultural sector to the nonagricultural sector
C) increases in labor force participation rates as workers who are out of the labor force pursue rising wages
D) growth in capital per hour worked accompanied by technological change
D
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The basic RBC model predicts ________ movements in the price level, which in fact occur ________ in the U.S. economy
A) countercyclical, only occasionally B) countercyclical, most of the time C) procyclical, only occasionally D) procyclical, most of the time
Judy has just bought a car that is made in Germany. As far as the U.S. balance of payments is concerned this purchase is a(n)
A) accounting identity. B) special draw. C) surplus item. D) deficit item.
A market failure is a situation in which
A) resources are being efficiently allocated, but some companies are forced to shut down. B) the market equilibrium leads to either too many or too few resources going towards producing the good or service. C) the government must take actions to correct the failures of the market in a particular industry. D) there is no free entry or exit into an industry.
Increases in aggregate demand are likely to create
a) deflation during recessions b) inflation when the output gap is quite negative c) higher output when the output gap is negative, and inflation when output is at capacity d) reductions in output if the output gap is already positive e) both inflation and recession