Consider two scenarios for a nation's economic growth. Scenario A has real GDP growing at an average annual rate of 2%; scenario B has an average annual growth of 8%. The nation's real GDP would double in about
A. 36 years under scenario A, versus 18 years under scenario B.
B. 18 years under scenario A, versus 9 years under scenario B.
C. 36 years under scenario A, versus 9 years under scenario B.
D. 25 years under scenario A, versus 12.5 years under scenario B.
Answer: C
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The short-run aggregate supply curve is most likely to shift to the right if ________.
A. productivity decreases B. input prices decrease C. wages increase D. sales taxes increase
The demand for Chocolate Chip Cookie Dough ice cream is likely quite elastic because
a. ice cream must be eaten quickly. b. this particular flavor of ice cream is viewed as a necessity by many ice-cream lovers. c. the market is broadly defined. d. other flavors of ice cream are good substitutes for this particular flavor.
The new lax lending requirement and low interest rates drove housing prices higher
What will be an ideal response?
Consider a small economy in which consumers buy only two goods: apples and pears. In order to compute the consumer price index for this economy for two or more consecutive years, we assume that
a. the number of apples bought by the typical consumer is equal to the number of pears bought by the typical consumer in each year. b. neither the number of apples nor the number of pears bought by the typical consumer changes from year to year. c. the percentage change in the price of apples is equal to the percentage change in the price of pears from year to year. d. neither the price of apples nor the price of pears changes from year to year.