If the population of Country A grows at 3% a year but technology growth is zero, then the neoclassical model predicts that in the steady state
a. the capital-to-labor ratio will increase at 3% a year.
b. per capita output to grow at 3% a year.
c. per capital output to grow at less than 3% a year.
d. the capital-to-labor ratio to decrease at 3% a year.
e. a and b.
D
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When planned autonomous spending rises, the planned expenditure line
A) makes a parallel shift downward. B) makes a parallel shift upward. C) pivots upward from the vertical intercept. D) pivots downward from the vertical intercept.
For a given price, a decrease in demand will decrease consumer surplus
Indicate whether the statement is true or false
A disadvantage associated with an Earned Income Tax Credit (EITC) program to reduce poverty is that it
a. encourages illegitimate births because single women with children receive higher payments. b. rewards laziness because it provides payments to those with low incomes regardless of their work effort. c. does not help the poor who are unemployed. d. creates unemployment by increasing the wage paid to unskilled workers above the equilibrium wage.
Government programs such as Social Security or Medicare are examples of
A. controllable expenditures. B. automatic stabilizers. C. entitlements. D. discretionary spending.