In the Harrod-Domar growth model, if 12.5% of income is saved, the incremental capital output ratio is 2.5 and the rate of depreciation is 4%, what is the implied rate of growth?
What will be an ideal response?
1%.
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The above table gives a country's government outlays and tax revenue for 2008 through 2012. During which years did the country have a balanced budget, budget surplus, and budget deficit?
What will be an ideal response?
When wages are fixed by contract, inflation reduces
a. nominal wages; this likely makes labor markets more flexible. b. nominal wages; this likely makes labor markets less flexible. c. real wages; this likely makes labor markets more flexible. d. real wages; this likely makes labor markets less flexible.
The Gini Coefficient in the United States has changed from 0.377 in 1986 to 0.45 in 2017, which means income inequality has ______.
a. grown b. shrunk c. disappeared d. held steady
Refer to the above graph, which shows the market for beef where demand shifted from D 1 and D 2. The change in equilibrium from E1 to E 2 is most likely to result from:
A decrease in consumer incomes An increase in the price of pork A decrease in the tax on beef products An increase in the cost of cattle feed