Why might income gains in the poorest DVC increase population growth, at least for a while?
What will be an ideal response?
While income growth can help to improve the standard of living, they can also cause the population to increase. This population growth occurs for a number of reasons. First, by increasing important resources to insure survival, a country’s death rate decreases and child mortality can decrease as medical programs and sanitation improve. Also, larger families, as a result of population growth, have negative effects such as low levels of savings and investment due to strapped resources, decreases in the productivity per worker, overuse of resources and an explosion of urban problems. Subsequently, improvements in the supply of consumer goods can raise the standard of living only to have those increases negated by the negative effects of population growth.
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Are the curves in the figure above drawn CORRECTLY? If not, what's wrong?
What will be an ideal response?
In the event that nominal short-term interest rates cannot be lowered further, the Federal Reserve might rely on ________
A) federal government fiscal policy B) targeting the fed funds rate C) quantitative easing D) targeting the inflation rate
Within the framework of the AD/AS model, if a long-run equilibrium is present in the goods and services market,
a. decision makers will have accurately forecast the current price level when they arrived at resource price and loanable funds agreements. b. the profit rates of the firms will generally exceed the competitive level. c. the actual rate of unemployment will be less than the natural rate of unemployment. d. output will exceed the economy's long-run sustainable output.
Ceteris paribus, or "all other things held constant," is an assumption that has what effect on a demand schedule?
a. It takes only prices into account. b. It considers the effects of all possible changes on demand. c. It is accurate no matter what changes occur. d. It is accurate only at one price level.