When the government considers whether it should change its spending in response to a recession, it must weigh the tradeoff between ________ and ________.
A. less output; higher prices
B. faster recovery time; inflation
C. faster recovery time; lower prices
D. more output; lower prices
Answer: B
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Indicate whether the statement is true or false
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Indicate whether the statement is true or false
When RBC economists work out a detailed numerical example of a more general theory, they are performing
A) econometrics. B) number theory. C) calibration. D) topology.
Suppose y = Ak1/4, the capital-labor ratio is $40,000 per worker, the level of total factor productivity is 800, 70% of the population works, and there are 70 million workers. Real GDP per capita is
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