If the long-term labor force growth rate is 1.2% and the long-term productivity growth rate is 2.4%, then the

A. spending multiplier is 2.
B. potential growth rate is 3.6%.
C. real GDP per capita growth rate is 0.5%.
D. short-term growth rate is 1.2%.


Answer: B

Economics

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Ali's Gyros operates near a college campus. Ali has been selling 120 gyros a day at $4.50 each and is considering a price cut. He estimates that he would be able to sell 200 gyros per day at $3.50 each

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