In a steady state
A) both consumption per worker and the capital—labor ratio are constant.
B) consumption per worker is constant, but the capital—labor ratio can change.
C) capital and labor, by definition, are inversely related to one another.
D) consumption per worker can change, but the capital—labor ratio is constant.
A
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If the level of technology rises, GDP per hour of labor
A) decreases for a given level of capital per hour of labor. B) increases for any level of capital per hour of labor. C) decreases because the level of capital per hour of labor decreases. D) increases because the level of capital per hour of labor increases. E) does not change because GDP increases only when capital or labor increases.
If the correlation between GDP and y is 0.55, we say y is
A) procyclical. B) acyclical. C) countercyclical. D) tricyclical.
Publications such as Consumer Reports magazine
a. increase the optimal amount of information gathered b. reduce the optimal amount of information gathered c. reduce the amount of common knowledge d. raise the marginal benefit of information curve e. make consumers perfectly informed
Fine-tuning involves the adoption of fixed policy rules regardless of the economic situation.
Answer the following statement true (T) or false (F)