A rightward movement along a country's aggregate production function implies labor capital deepening
a. True
b. False
Indicate whether the statement is true or false
False
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The Fed raises the federal funds rate. Which of the following changes occurs most rapidly?
A) Exchange rate rises. B) Consumption expenditure decreases. C) Aggregate demand decreases. D) Real GDP growth decreases. E) Inflation rate decreases.
If the Ricardo-Barro effect is present, a government budget deficit raises the equilibrium real interest rate by ________ and decreases the equilibrium quantity of investment by ________ than if the Ricardo-Barro effect is absent
A) more; more B) more; less C) less; more D) less; less
Which of the following would not cause a change in the supply of milk?
a. an increase in government subsidies to dairy farmers b. an increase in the price of milk c. the discovery of growth hormones to stimulate the milk production of cows d. an increase in the cost of feed for cows
Indirectly, overvalued exchange rates in Latin America caused
A) a capital shortage in agriculture. B) a capital shortage in industry. C) a capital abundance in agriculture. D) an increase in competitive pressures faced by industry.