Why do very small differences in annual growth rates amount to big differences in the degree of long-term economic growth?
A) because the slower-growing countries save too much
B) because the annual growth rate is compounded over time
C) because the faster-growing countries gain a political advantage over poorer countries, and use that advantage for their economic gain
D) because the slower-growing countries don't export enough
B
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By definition, an inferior good is a
A) want that is not expressed by demand. B) normal substitute good. C) good for which demand decreases when its price rises. D) good for which demand decreases when income increases.
There is no market failure if
A. the marginal private cost curve is upward sloping. B. the demand curve (for a good or service) is downward sloping. C. the demand curve lies about the marginal private cost curve. D. marginal private costs are greater than the external costs associated with a negative externality. E. none of the above
The velocity of money is assumed to be constant in the Classical model because
A) the payment habits of the community. B) fixed level of real GDP. C) the demand for money varies with the level of real output. D) aggregate demand is constant.
When drawn against the real interest rate, the output demand curve shifts to the right when
A) current total factor productivity z increases. B) current total factor productivity z decreases. C) future total factor productivity z' increases. D) future total factor productivity z' decreases.