Small differences in economic growth rates translate into significant differences in living standards
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following does not correctly characterize modern economic growth?
A. It has occurred only in the last 200 or so years. B. It has not affected the average lifespan of human beings. C. It drastically alters the culture and politics of society. D. It spread slowly across the globe, with some societies not having experienced it yet.
In Year 1 suppose the economy is at potential GDP and that the federal budget deficit equals $100 billion. In Year 2 the federal budget deficit rises to $150 billion, but the cyclically adjusted budget deficit falls to $75 billion
How can the actual budget deficit rise and the cyclically adjusted budget deficit fall?
A local labor market for lawn-mowing workers is initially in equilibrium. If researchers develop a new inexpensive grass seed that provides a lush, slow-growing lawn, which of the following will occur in the short run?
a. Both labor demand and labor supply will drop, leading to a higher wage rate but lower employment. b. Both labor demand and labor supply will rise, leading to a lower wage rate and lower employment. c. Labor demand will drop, leading to a lower wage rate and higher employment. d. Labor supply will drop, leading to a higher wage rate and lower employment. e. Labor demand will drop, leading to a lower wage rate and lower employment.
Necessities such as food and clothing tend to have
a. high price elasticities of demand and high income elasticities of demand. b. high price elasticities of demand and low income elasticities of demand. c. low price elasticities of demand and high income elasticities of demand. d. low price elasticities of demand and low income elasticities of demand.