Where is the interest rate determined in the classical model?
a. In the goods market
b. In the loanable funds market
c. By the federal government
d. By the Fed
e. Where aggregate expenditure equals GDP.
B
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Use production functions from the economic growth model to explain why the United States grew at a much faster rate than the Soviet Union in the latter half of the 20th century
What will be an ideal response?
It is generally claimed that a movement from autarky to free trade consistent with Ricardian comparative advantage increases the economic welfare of each of the trade partners
However, it may be demonstrated that under certain circumstances, not everyone in each country is made better off. Illustrate such a case.
A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2016 found a job paying $35,000. The CPI was 2.40 in 2016. The 1972 graduate's job paid ________ in nominal terms and ________ in real terms than the 2016 graduate's job.
A. more; more B. less; more C. less; less D. more; less
The marginal benefit of the pollution abatement curve
A. has a zero slope. B. slopes downward. C. slopes upward. D. has a positive slope up to a certain point and then a negative slope.