According to the neoclassical growth model, if a country makes a policy change to increase its savings rate, in the new steady state:
a. output per worker will grow faster than before.
b. output per worker will grow at the rate of technology growth.
c. capital per worker will be permanently higher.
d. all of the above.
D
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The largest loss a profit-maximizing perfectly competitive firm can incur in the short run equals its
A) average variable cost multiplied by output. B) total fixed cost. C) marginal cost multiplied by the number of units produced. D) average total cost multiplied by the number of units produced. E) total variable cost.
The use of goods and services for personal satisfaction is known as
A) the law of increasing relative cost. B) specialization. C) comparative advantage. D) consumption.
Discuss in detail the three things mentioned in the text that the Federal Reserve did to deal with the 2007-2009 financial crisis
Forwards, swaps, futures, and options are examples of:
a. spot market transactions. b. transaction costs. c. market frictions. d. derivatives.