In the long run, if government increases spending ________
A) interest rates decrease
B) it crowds out private investment
C) saving increases
D) all of the above
E) none of the above
B
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The cross-price elasticity between natural gas and heating oil is estimated to be 2.3 . The cross-price elasticity between natural gas and electricity is estimated to be -0.8
What is the relationship between natural gas and heating oil? What is the relationship between natural gas and electricity? Explain.
Skateboards are produced according to the production function, q = 10K0.25L0.5 - L. At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?
A) L = 100. B) L = 10. C) L = 5. D) Not enough information is given.
Which of the following is true of the rule of 72?
a. The rule of 72 is used to approximate annual real GDP. b. The rule of 72 determines the time required for any value to double if it grows at a constant annual rate. c. The rule of 72 is used to calculate the number of years it takes for any quantity to treble in size. d. The rule of 72 refers to the fact that real GDP doubles every 6 years. e. The rule of 72 refers to the fact that capital growth has consistently contributed 72 percent to the U.S. real GDP.
When expectations of inflation are revised downward, the short-run Phillips curve: a. shifts rightward. b. becomes steeper. c. shifts leftward
d. becomes flatter.