Suppose policy makers pass a budget that results in a reduction in the budget deficit. Also assume that this fiscal policy action results in an increase in the saving rate. To what extent will this increase in the saving rate cause permanent changes in the rate of growth of output per worker? Explain
What will be an ideal response?
A budget that causes a reduction in the budget deficit will cause an increase in the saving rate. Increases in the saving rate will only temporarily affect the growth rates of Y and Y/N. Once the new balanced growth equilibrium is achieved, the growth rates of Y and Y/N will return to their original levels.
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Refer to the table above. At what rate did the country grow between 2006 and 2007?
A) 13.63% B) 17.47% C) 15.55% D) 19.24%
Real GDP per person averaged $150 a year (in 2009 dollars) from 1,000,000 BC until 1620. During this time there was a period when it rose to ________ around ________ because ________
A) $190; 500 BC; of the gains from human capital while Aristotle and Plato were teaching in Athens B) $210; 1620; the Pilgrim Fathers began to arrive in the Americas C) a 1-million year high; the 1340s; the Black Death gripped Europe D) $140; 400 BC; the Roman Empire collapsed E) $210; 1492; Columbus sailed to the Americas
A good is considered to be nonexcludable if
A) your consumption of the good reduces the quantity available for others to consume. B) the producer can keep those who did not pay for the good from consuming the good. C) the producer finds it difficult to keep those who did not pay for the good from consuming the good. D) it is jointly owned by all members of a community.
An example of a market where a Bertrand model would be NOT be plausible is the market for
A) pizza. B) sweaters. C) motorcycles. D) toothpicks.