Suppose a country, whose production and consumption of coffee is large relative to the world market, has just entered the global market. If the country is a net exporter of coffee, we would expect the world:
A. supply curve to shift more to the right than the world demand curve as a result.
B. supply curve to shift more to the left than the world demand curve as a result.
C. demand curve to shift more to the right than the world supply curve as a result.
D. demand curve to shift more to the left than the world supply curve as a result.
A. supply curve to shift more to the right than the world demand curve as a result.
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When incorporating labor-augmenting technological change into the Solow growth model, the focus is on
A) capital per worker and output per worker. B) capital per effective worker and output per worker. C) capital per worker and output per effective worker. D) capital per effective worker and output per effective worker.
An important effect of fractional reserve banking is that bankers have
a. little control over total reserves. b. total control over the amount of lending in the economy. c. no control over the amount of reserves in the banking system. d. some discretion over the money supply.
When economic structuralists witness powerful countries attempting to take control of natural resources in weaker countries, they see this as a
a. normative collaboration. b. triumph of hegemony. c. tragedy of the commons. d. new colonialism
In Figure 9.9, at a full-employment output level of $150 billion, the gap by which actual aggregate income or GDP is different from full-employment income or GDP is
A. An inflationary gap of $25 billion income. B. An inflationary gap of $50 billion income. C. A recessionary gap of $50 billion income. D. Expenditure equilibrium.