During a banking crisis during the period of free banking, the unexpected surge in the demand for money in the form of specie would cause bankers to call in loans which would, in turn, squeeze credit, slow output and increase unemployment
Indicate whether the statement is true or false
True
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Households increase the quantity of labor supplied when
A) the real wage rate increases. B) the real wage rate decreases. C) job opportunities increase. D) the nominal wage decreases and the price level rises. E) income taxes increase.
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Which of the following is NOT a reason for differences in per capita income in neoclassical growth theory?
A) All countries have the same production function. B) Countries have different savings rates. C) The slope of the steady-state investment line is different for different countries. D) All of the above.
If the GDP of Macroland is $250,000,000 and they have a population of 5,000 people, then the GDP per capita is:
A. $1,250,000. B. $50,000. C. $5,000. D. quite high.