According to the structural stagnation theory,
A. U.S. economic growth will never return to the world average growth rate, because foreign economies have so far to catch up.
B. U.S. economic growth will return to the world average growth rate, but by that time, the U.S. share of world output will have declined.
C. U.S. economic growth will return to the world average growth rate, and its current share of world output will remain unchanged.
D. After a period of slower growth, U.S. economic growth will exceed world growth.
Answer: B
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Which of the following is not crucial to the Harrod-Domar model?
a. population growth rate b. marginal propensity to save c. incremental capital-output ratio d. marginal propensity to consume e. all were crucial to the Harrod-Domar model
Suppose the economy is in long-run equilibrium at an inflation rate of 1% Then inflation expectations rise to 2% and inflation rises to 3%. The increase in expected inflation shifts the short-run Phillips curve
a. right. Overall, unemployment moves above its natural rate. b. right. Overall, unemployment moves below its natural rate. c. left. Overall, unemployment moves above its natural rate. d. left. Overall, unemployment moves below its natural rate.
Corrected for inflation, the real GDP was only about _____ times greater in 2014 than in 1959.
A. 3.1 B. 5.3 C. 6.7 D. 11.2
Individuals who specialize in activities that lower transaction costs are
A. producers. B. middlemen. C. consumers. D. bureaucrats.