What other name does Professor Tabarrok give to the economy's long-run potential growth rate?
A. the equilibrium growth rate
B. the Solow growth rate
C. the factor growth rate
D. the fundamental growth rate
Ans: B. the Solow growth rate
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The total utility you get from eating slices of pizza on a given night is the
A) marginal utility of the last slice times the total number of slices eaten. B) sum of the differences in marginal utility as you increase the number of slices eaten. C) sum of the marginal utilities of all slices eaten. D) sum of the marginal utilities per dollar spent on all slices eaten.
If workers are changing jobs voluntarily and it takes a while for them to find new jobs, they are an example of
a. structural unemployment. b. frictional unemployment. c. technological unemployment. d. None of these.
Two goods belonging to the same market have cross elasticities less than three
Indicate whether the statement is true or false
At the beginning of year one, there is no government debt outstanding. The government runs a $100 billion deficit in year one. Interest at a nominal rate of 10% must be paid starting in year two. Assume nominal GDP in year one is $2000 billion and the nominal growth rate of GDP is 4%. Assume the government balances its primary budget in the future and the interest rate and growth rate do not change.(a)What will be the government deficit in years two, three, four, and five?(b)What will be the value of government bonds outstanding at the end of the fifth year?(c)What will be the debt-GDP ratio at the end of year five?
What will be an ideal response?