The classical growth theory asserts that
A) population growth leads to more growth in technology.
B) population growth will lead to people earning only a subsistence level of income.
C) economic growth will continue indefinitely.
D) economic growth and population growth complement each other.
E) population growth increases a nation's economic growth.
B
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A researcher claims that the standards of law and order are the basis of the economic prosperity of a certain country. This argument is based on the:
A) geography hypothesis. B) location hypothesis. C) culture hypothesis. D) institutions hypothesis.
Which of the following is an example of automatic fiscal policy?
A) The government deliberately raises taxes. B) The government deliberately lowers taxes. C) The government deliberately increases spending. D) The government deliberately decreases spending. E) none of the above
According to the following graph, at point A,
The price of Y is $50.
A. the consumer can exchange two units of X for one unit of Y and keep income unchanged. B. the consumer can exchange two units of X for one unit of Y and keep utility unchanged. C. the consumer receives twice as much marginal utility from X as from Y. D. both a and b E. all of the above
In the long run, a decrease in aggregate demand, all other things unchanged, will cause the price level to _______ and potential output to _______ .
A. decrease; decrease B. increase; remain stable C. decrease; remain stable D. increase; increase