A COLA automatically raises the wage rate when
A. GDP increases.
B. taxes increase.
C. the consumer price index increases.
D. the producer price index increases.
Ans: C. the consumer price index increases.
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A specialized worker doesn't spend time switching from one task to another. This source of productivity increase is called
A) functionality. B) continuity. C) innovation. D) repetition.
An increase in the currency drain
A) leads to an increase in excess reserves. B) decreases the size of the money multiplier. C) results in an increase in deposits. D) results in an increase in required reserves.
One of the central predictions of neo-classical macroeconomic growth theory is that an increase in the growth rate of the population causes at first a decline the growth rate of real output per capita,
but that subsequently the growth rate returns to its natural level, itself determined by the rate of technological innovation. The intuition is that, if the growth rate of the workforce increases, then more has to be saved to provide the new workers with physical capital. However, accumulating capital takes time, so that output per capita falls in the short run. Under the assumption that population growth is exogenous, a number of regressions of the growth rate of output per capita on current and lagged population growth were performed, as reported below. (A constant was included in the regressions but is not reported. HAC standard errors are in brackets. BIC is listed at the bottom of the table). Regression of Growth Rate of Real Per-Capita GDP on Lags of Population Growth, United States, 1825-2000 (1) (2) (3) (4) (5) Lag number Dynamic multipliers Dynamic multipliers Dynamic multipliers Dynamic multipliers Dynamic multipliers 0 -0.9 (1.3) -1.1 (1.3) -1.3 (1.7) -0.2 (1.7) -2.0 (1.5) 1 3.5 (1.6) 3.2 (1.6) 1.8 (1.6) 0.8 (1.5) - 2 -1.3 (1.7) -3.0 (1.6) -2.2 (1.4) - - 3 0.2 (1.7) 1.5 (1.2) - - - 4 -2.0 (1.5) - - - - BIC -234.4 -236.1 -238.5 -240.0 -241.8 (a) Which of these models is favored by the information criterion? (b) How consistent are these estimates with the theory? Is this a fair test of the theory? Why or why not? (c) Can you think of any improved data to test the theory? What will be an ideal response?
When economists refer to investment, they mean the purchasing of stocks and bonds and other types of saving
a. True b. False Indicate whether the statement is true or false