Over the past year, productivity grew 1.8%, capital grew 2%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.2 and 0.8, respectively, how much did output grow?
A) 1%
B) 2%
C) 3%
D) 4%
C
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The conversion of a barter economy to one that uses money
A) increases efficiency by reducing the need to exchange goods and services. B) increases efficiency by reducing the need to specialize. C) increases efficiency by reducing transactions costs. D) does not increase economic efficiency.
What are the pros and cons of using cold turkey disinflation compared to a policy of gradualism?
What will be an ideal response?
If wages rise by 12 percent at the same time prices rise by 3 percent, then the increase in real wages is equal to
a. 12 percent. b. 9 percent. c. 6 percent. d. 3 percent.
Use the following balance sheet for the First Federal Bank to answer the next question.AssetsLiabilities + Net WorthReserves$100,000Checkable deposits$300,000Loans140,000Stock shares200,000Securities60,000 Property200,000 If the reserve requirement is 20%, this bank can safely expand its loans by a maximum of
A. $20,000. B. $100,000. C. $200,000. D. $40,000.