Initially, the economy is at point B on Figure 10-2 above. According to the Solow growth model, a dramatic decrease in the rate of saving after complete adjustment shifts the economy from ________
A) B to H, increasing output per capita
B) B to C, increasing output and capital per capita
C) B to D, decreasing the output and capital per capita in the long run
D) B to E, decreasing output per capita but holding per capita capital constant
C
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The aggregate production function is an equation that shows the relationship between ________ and ________
A) the inputs employed by firms; the maximum output firms can produce with those inputs B) the inputs employed by an individual firm in an economy; the average of the inputs employed by all firms in an economy C) the output produced by an individual firm in an economy; the average of the output produced by all firms in an economy D) the average level of capital used in production in an economy; the average level of labor used in production in an economy
A major goal of federal government policy is to eliminate frictional unemployment
a. True b. False Indicate whether the statement is true or false
How did the Single European Act create economic gains in the EU?
What will be an ideal response?
For a perfectly competitive firm facing the short-run break-even price
A) it has a negative accounting profit. B) it has an economic profit of zero. C) it should shut down. D) it should expand production.