Which of the following is true of a small open economy, but not of a large open economy?
A) Net exports are unlikely to be close to zero.
B) The domestic real interest rate is equal to the world real interest rate.
C) Changes in desired investment result in changes in the trade balance.
D) Changes in desired investment result in changes in actual investment.
E) none of the above
E
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Influence cost is a type of _____ incurred while filling positions that have similar responsibilities but carry different pay
a. deadweight loss b. opportunity cost c. externality d. social cost
Suppose in an economy the total factor productivity grows by 5%. Annual growth in labor and capital stock equal 2.5% and 1.5% respectively. If the labor force receives 75% of the real GDP, calculate the annual growth in the real GDP of the economy
a. 10.5% b. 7.25% c. 5.50% d. 4.76% e. 0.05%
When aggregate demand shifts rightward along the short-run aggregate-supply curve, inflation
a. increases and unemployment increases. b. increases and unemployment decreases. c. decreases and unemployment increases. d. decreases and unemployment decreases.
The short-run aggregate supply curve ______.
a. slopes upward b. is perfectly vertical c. slopes downward d. is perfectly horizontal