In the Solow model, if productivity doesn't change,
A. the capital-labor ratio must rise.
B. the capital-labor ratio must decline.
C. the economy must eventually reach a steady state.
D. there can be no saving.
Answer: C
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What are the three factors that affect the demand for foreign currency?
What will be an ideal response?
From 1950 till 2009 the four-quarter growth rate of real GDP has been as high as ________ percent and as low as ________ percent
A) 8.1; -2.8 B) 12.6; -3.9 C) 3.2; 2.5 D) 5; -10
Refer to the above figure. Suppose that the supply curve shifts from SA to SB while the demand curve shifts from DA to DB. Which of the following is TRUE about the results of the shifts in the supply and demand curves?
A) The equilibrium price increases while the equilibrium quantity remains unchanged. B) Both the equilibrium price and equilibrium quantity increase. C) The equilibrium price remains unchanged while the equilibrium quantity increases. D) Both the equilibrium price and equilibrium quantity remain unchanged.
Suppose Microsoft announces it is cutting the prices of some of its software titles (mainly games) by 25 percent. Assuming that Microsoft is seeking to increase revenues, it must believe that the elasticity of demand for these products is
a. elastic. b. inelastic. c. of unitary elasticity. d. perfectly inelastic.