The new growth theory that arose in the late 1980s has been described as ________ because it treats technological change as ________
A) exogenous, random unpredictable shocks
B) exogenous, generated by market incentives
C) endogenous, random unpredictable shocks
D) endogenous, generated by market incentives
D
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A good example of using the discount rate to serve the lender of last resort role for the financial system occurred during the
A) savings and loan crisis of the 1980s. B) stock market crash of 1987. C) sharp rise in government deficits during the 1980s. D) developing-country debt crisis of the 1980s.
Discuss how size of government can negatively affect economic growth
Exhibit 7-1 Consumer Price Index Year ConsumerPrice Index 1 100 2 110 3 115 4 120 5 125 As shown in Exhibit 7-1, the rate of inflation for Year 5 is:
A. 4.2 percent B. 5 percent. C. 20 percent. D. 25 percent.
A severe drought has devastated cocoa plants, causing an increase in the price of chocolate. In the market for chocolate chip cookies
A) a surplus will arise. B) supply has decreased and price has increased. C) quantity has decreased and price has decreased. D) quantity demanded has increased.