The oversimplified formula for the multiplier is misleading because it ignores the effects of
a. price-level changes.
b. the foreign sector.
c. variable taxes.
d. All of the above are correct.
d
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A sudden stop will be easier to navigate if the country borrows internationally in foreign currencies and lend locally in its domestic currency
Indicate whether the statement is true or false
The services British capital provides in Spain are a service export from Britain
A) therefore they are subtracted from British GDP in calculating British GNP. B) therefore they are added to Spanish GDP in calculating Spanish GDP. C) therefore they are added to British GDP in calculating British GNP. D) therefore they are added to Spanish GNP in calculating Spanish GDP. E) therefore they are subtracted from Spanish GNP.
In a small country, the adult population is 10,000. In that country, 7,000 people are in the labor force and 6,300 people are employed. The unemployment rate equals
A. 0.63 percent. B. 7 percent. C. 10 percent. D. an undetermined amount given the lack of information.
In the food and kindred products industry, it is estimated that the elasticity of output with respect to labor is 0.43 and the elasticity of output with respect to capital is 0.48. These two measures indicate that the primary metals industry is characterized by
A) decreasing returns to scale. B) constant returns to scale. C) increasing returns to scale. D) no returns to scale.