Increases in capital per worker ________ because ________
A) increase real GDP; they create a movement downward along the productivity curve
B) increase real GDP; they create a movement upward along the productivity curve
C) increase real GDP; they shift the productivity curve upward
D) increase real GDP; they shift the productivity curve downward
E) may increase or decrease real GDP; the result is a movement along the productivity curve but the direction depends on other factors not given
B
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How are the rich able to shield large amounts of their income from sales tax while the poor typically cannot?
What will be an ideal response?
Assume the United States has an absolute advantage in the production of everything compared to the African nation of Berundi. Can you think of any reason why both nations would still find it to their mutual advantage to trade with each other?
What will be an ideal response?
Why are sellers willing to sell more at a higher price?
The major difference between the Keynesian approach and the monetarist approach is that
a. Keynesian analysis explains an equilibrium condition and monetarism does not. b. in Keynesian analysis, money affects the economy by first affecting interest rates; monetarist analysis is not limited to working through interest rates. c. monetarism explains an equilibrium condition and Keynesian analysis does not. d. there are no differences.