Population growth is more likely to contribute to economic growth when
A. economic freedom is present.
B. technological progress is limited.
C. the labor force participation rate does not increase.
D. capital accumulation is limited.
Answer: A
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________.
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
If the marginal propensity to consume (MPC) is 0.75 and government purchases increase by $200 billion, then
A) equilibrium real Gross Domestic Product (GDP) will increase by $50 billion. B) the effect on equilibrium real Gross Domestic Product (GDP) cannot be determined from the given information. C) equilibrium real Gross Domestic Product (GDP) will increase by $800 billion. D) equilibrium real Gross Domestic Product (GDP) will increase by $200 billion.
In which market structure is it not possible to practice price discrimination?
A) oligopoly B) monopolistic competition C) monopoly D) perfect competition
An expansionary monetary policy raises firms' cash flows by ________ interest rates
A) lowering real B) lowering nominal C) raising real D) raising nominal