In the real business cycle model, an increase in current total factor productivity leads to
A) an increase in investment.
B) a decrease in investment.
C) no change in investment.
D) an ambiguous response of investment.
A
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Total surplus or gains created from trade equal
a. Seller surplus b. Buyer surplus c. The summation of seller and buyer surplus d. Profits earned by a firm
The marginal cost of hiring the 7th worker is
a. $400 b. $1000 c. $200 d. $0
During the Reagan administration, the Laffer curve was used to ague that:
a. the supply-side effects of tax cuts are relatively small. b. discretionary tax cuts are unwise because they create stagflation. c. lower income tax rates could increase tax revenues. d. a "flat tax" would simplify the tax code and stimulate economic growth.
Which of the following statements concerning the First Bank of the United States is not true?
a. Its creation was proposed by Alexander Hamilton. b. States' rights advocates opposed its creation. c. It could present state bank notes to the state banks for payment in specie. d. It was the first central bank in the world. e. It was able to control the money supply.