Using the textbook's production function, if two percent more labor working with two percent more capital produces two percent more real GDP, then "multifactor productivity" has
A) risen by four percent.
B) risen by two percent.
C) remained unchanged.
D) fallen by one percent.
E) fallen by two percent.
C
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In a certain economy, the components of aggregate spending are given by: C = 100 + 0.9(Y - T) - 500rI = 150 - 1,000rG = 200NX = 50T = 100 Given the information about the economy above, what would be the impact on short-run equilibrium output of a one-percentage-point decrease in the real interest rate from 6 percent to 5 percent?
A. Short-run equilibrium output would decrease by 150 units. B. Short-run equilibrium output would increase by 150 units. C. Short-run equilibrium output would decrease by 1,500 units. D. Short-run equilibrium output would increase by 15 units.
Suppose Congress increased spending by $100 billion and raised taxes by $100 billion to keep the budget balanced. What will happen to real equilibrium GDP?
A) Real equilibrium GDP will fall. B) Real equilibrium GDP will rise. C) Real equilibrium GDP will initially rise, but then fall below its previous equilibrium value. D) There will be no change in real equilibrium GDP.
Tickets to the Michigan-Notre Dame football game are usually sold out in advance of game day. This suggests that
a. the price of the tickets must be very high or else people would not consider them valuable b. the price is set below the equilibrium level c. the football stadium is relatively small d. everyone who attends the game will enjoy it e. the price is determined primarily by the fixed supply of tickets
Self-interest is not necessarily selfish, some say. In fact, self-interest likely includes an individual’s consideration for Group of answer choices
A. A strangers. B. C close friends and family. C. B humankind as a whole.