Suppose two countries are identical in every way with the following exception. Economy A has a higher rate of depreciation (?) than economy B. Given this information, we know with certainty that
A) steady state consumption in A is higher than in B.
B) steady state consumption in A is lower than in B.
C) steady state consumption in A and in B are equal.
D) steady state growth of output per worker is higher in A than in B.
E) none of the above
B
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If real GDP helps to predict the path of a particular macroeconomic variable, it is said to be a
A) conventional variable. B) coincident variable. C) leading variable. D) lagging variable.
Business cycles are a persistent feature of the U.S. economy
a. True b. False Indicate whether the statement is true or false
A monopsonist must raise the wage rate if it desires to hire additional workers.
Answer the following statement true (T) or false (F)
In his article Straight Talk About Economic Literacy, economist _______________________ said, "Citizens can vote even if they have no idea what they are doing. If enough voters fit that description, democratic governments are bound to make foolish decisions."
A) Milton Friedman B) James Buchanan C) Bryan Caplan D) John Maynard Keynes