Which of the following is NOT a flaw of using real GDP per capita to assess the welfare of a country?
What will be an ideal response?
It does not measure income.
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In a model with money neutrality, how much should the money supply be increased to obtain a 1% increase in real output?
A) -1% B) between 0 and 1% C) 1% D) It cannot be done.
Classical economists believed that
a. the market system always operated at a position of full employment. b. occasional problems of unemployment could occur but would be quickly eliminated by the system of self-regulating markets. c. the price level would adjust to balance planned saving with planned investment. d. the economy had several possible equilibrium output levels.
The ability of unions to successfully raise wage rates is dependent on the
a. higher elasticity of supply for labor b. lower elasticity of supply for marginal product c. higher elasticity of demand for the goods produced d. lower elasticity of demand for the goods produced e. higher elasticity of demand for labor
A street light is
a. rival and exclusive, and therefore is a public good b. nonrival, but since it is exclusive, it is a private good c. exclusive, but since it is nonrival, it is a public good d. nonrival and nonexclusive, and therefore is a public good e. nonrival and nonexclusive, and therefore is a private good