One of the shortcomings of the Solow growth model is that in it the rate of technological change is
A) assumed to be zero.
B) assumed to be equal to the population growth rate.
C) left unexplained.
D) zero unless the saving rate exceeds the depreciation rate.
C
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Which of the following is NOT a characteristic of the demand curve faced by a firm in a monopolistically competitive market?
A) The demand curve is downward sloping. B) The slope of the demand curve is negative. C) The firm will produce where the demand curve is inelastic. D) The firm will produce where the demand curve is elastic.
Suppose a perfectly competitive constant-cost industry is in long-run equilibrium when market demand suddenly increases. What would probably happen to a firm in this industry in the long run?
a. It would experience no change for the original equilibrium b. It would experience a higher equilibrium price c. It would experience a lower equilibrium price d. It would experience the same equilibrium price but would reduce its output e. It would experience higher average total costs and would reduce its output
If nominal GDP is 2700 and the money supply is 900, what is velocity?
a. 25 b. 13.5 c. 3 d. 0.33
Economists might be willing to accept a policy that adversely affected distribution of income if it
a. lessened income disparities. b. diminished labor productivity by a large amount. c. increased productivity by a large amount. d. were favorable to the rich.