For this question, assume that expectations of productivity are slow to adjust. Further assume that A had been increasing by 2% a year. Now suppose that A increases by 5% in period t. This increase in productivity growth will cause
A) the real wage to rise and no change in the natural rate of unemployment.
B) the WS relation to shift up more than the PS relation.
C) the natural rate of unemployment to fall.
D) the real wage to fall.
C
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Stefano has just completed an original oil painting. After considering the costs for brushes, paint, canvas, and the value of Stefano's labor time, the marginal cost of the painting is $1,000. Lucky Stefano. One art lover paid him $1,500
How much producer surplus did Stefano obtain? A) The amount of producer surplus cannot be determined from the information given. B) $1,500 C) $1,000 D) $500
Why are net exports and net capital outflow always equal?
In Kejana’s country, the population is growing at a rate of 3.5 percent per year. Due to environmental factors, the country has a limited supply of land on which to grow food, and food output is increasing at a rate of 2.75 percent per year. The population growth rate in Kejana’s country is ______ the per capita output.
a. having minimal impact on b. positively affecting c. operating separately from d. negatively affecting
The market system is an economic system that:
A. Produces more consumer goods than capital goods B. Produces more capital goods than consumer goods C. Gives private individuals the right to own resources used in production D. Emphasizes the government's power to control markets and direct economic activity