Output per person rises when
a. the population increases faster than real GDP
b. real GDP rises faster than the number of employed workers
c. real GDP increases at the same rate as the population
d. real GDP rises slower than the population
e. real GDP rises faster than the population
E
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The effects of the negative supply shocks of 1973, 1979 and 2007 were different due to the ________
A) role played by rational expectations in the 1979 event B) different sources of the supply shocks C) credibility of the monetary authorities D) different individuals who led the Federal Reserve System
Let the production function be q=ALaKb. The function exhibits increasing returns to scale if
A) a + b = 1. B) a + b > 1. C) a + b < 1. D) Cannot be determined with the information given.
Two products that are usually consumed jointly would be referred to as
a. substitutes. b. complements. c. inferior goods. d. unrelated goods.
High gasoline prices give people all of the following incentives EXCEPT
A) to drive less. B) to car pool. C) to buy a hybrid car. D) to take vacations that require driving more miles.