In the Solow growth model, an increase in the marginal propensity to consume shifts the ________, with the implied change in the capital stock resulting in a ________ standard of living in the long run
A) steady-state investment line upward, higher
B) steady-state investment line downward, higher
C) national saving line upward, lower
D) national saving line upward, higher
E) national saving line downward, lower
E
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If the regulator require a natural monopoly set its price equal to its marginal cost, that would ensure
A) an economic profit for the firm. B) zero economic profit for the firm. C) an economic loss for the firm. D) an accounting loss for the firms.
Consumption, as a component of GDP:
A. includes nondurable goods only. B. measures spending on goods and services by individuals and households. C. measures spending only on goods, not services, by private individuals and households. D. includes durable goods only.
The measure of final goods and services produced in the United States is the
A. GDP of the United States. B. Total sales of all goods during the year. C. Percentage change in the GDP of the United States. D. Per capita GDP in the United States.
The inability of Congress to pass a stimulus package after September 11, 2001, could be used as an argument for
A. activist fiscal policy. B. activist monetary policy. C. expansionary fiscal policy. D. contractionary monetary policy.