Which of the following is always true after an economy reaches a balanced growth equilibrium?
A) the growth rate of output equals the rate of depreciation
B) population growth is zero
C) the growth rate of capital is equal to the growth rate of the effective work force
D) the growth rate of capital is equal to the savings rate
E) none of the above
C
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Potential output is
A. the level of real GDP that exists when the economy is experiencing only frictional and cyclical unemployment. B. the level of real GDP that exists when the quantity of labor supplied is equal to the quantity of labor demanded. C. the level of real GDP that exists when the actual rate of unemployment is zero. D. the level of real GDP that exists when the economy is experiencing only cyclical and structural unemployment.
Use the above table. At an income of $50
A. real dissaving is $50. B. real saving is $10. C. real saving is $20. D. real dissaving is $10.
________ can be altered to change the lending capacity of the banking system.
A. Points charged on a typical first mortgage B. The reserve requirement C. The dollar exchange rate D. Gold reserves
Which of the following is most closely associated with positive economics?
a. determining the impact of government spending on the actual level of total employment b. determining the best level of immigration into the country c. determining whether too many luxury goods are being produced d. determining whether the government should reduce poverty e. determining whether the government should alter income taxes in order to increase total employment