In the Solow model, if a country's saving rate (?) increased from 10% to 12% and it was operating at its steady state before the change, we would expect to see:
A. an increase in the capital stock only.
B. a decrease in both the capital stock and output.
C. an increase in output only.
D. an increase in both the capital stock and output.
Answer: D. an increase in both the capital stock and output.
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At $5 per cup, customers will buy 8 cups of coffee per week. At a price of $3, consumers are willing to buy 12 cups per week. The elasticity of the market demand curve for coffee between P = $5 and P = $3 (dropping all minus signs) is
A. 0.40. B. 1.0 C. 1.25. D. 0.80.
Which of the following will increase the marginal product of labor in the labor market?
a. An increase in the price level and the money wage. b. An increase in the real wage. c. A decrease in the capital stock. d. An increase in the supply of labor.
Jeff decides that he would pay as much as $3,000 for a new laptop computer. He buys the computer and realizes consumer surplus of $700 . How much did Jeff pay for his computer?
a. $700 b. $2,300 c. $3,000 d. $3,700
The quantity supplied is the amount firms wish to sell
A. at a particular price (the timeframe is irrelevant). B. at all possible prices (the timeframe is irrelevant). C. at all possible prices during a specified period of time. D. at a particular price during a specified period of time.