Country Costa and Country Delta initially have the same real GDP per capita. Country Costa experiences no economic growth, while Country Delta grows at a sustained rate of 3.5 percent. In 20 years, Country Delta's GDP will be approximately ___________ that of Country Costa.
a. triple
b. double
c. one-half
d. one-fourth
b. double
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The Capital Asset Pricing Model determines the weighted average cost of capital
Indicate whether the statement is true or false
The tradeoff between inflation and unemployment
a. implies that policies designed to reduce unemployment also reduce inflation. b. was eliminated by improved economic policies in the 1900s. c. is a long-run tradeoff, persisting for decades, according to most economists. d. None of the above are correct.
If there is excess supply
What will be an ideal response?
An asset price "bubble" is created when
A. buyers base their purchase decision upon their expectation that the asset's price will rise. B. buyers base their purchase decision upon solid fundamentals. C. sellers base their sale decision upon their expectation that the asset's price will fall. D. sellers base their sale decision upon solid fundamentals.