In the neoclassical growth model, if two countries are exactly the same but one has a lower permanent budget deficit, we would expect that country to have
a. higher output, a higher capital-to-labor ratio, and higher output growth in the steady state.
b. the same output and capital-to-labor ratio, but higher output growth in the steady state.
c. higher output, the same capital-to-labor ratio, and the same output growth in the steady state.
d. higher output, a higher capital-to-labor ratio, and the same output growth in the steady state.
D
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Which of the following would most likely NOT be taught in a macroeconomics course?
A) changes in the health care industry B) factors leading to different economic growth rates among countries C) government actions in response to a slowdown in the economy D) the relationship between the inflation rate and the unemployment rate
The slope of the aggregate demand curve illustrates that as the price level rises,
a. real GDP demanded decreases. b. real GDP demanded increases. c. the aggregate demand curve shifts rightward. d. the aggregate demand curve shifts leftward.
In order to increase productivity and economic growth, poor nations need
A. Increased consumption. B. A strong dictator. C. A large military. D. Increased capital investment.
Four-Firm Concentration Ratios
The most oligopolistic industry of those presented in the above table is likely to be industry
A. W. B. X. C. Y. D. Z.