Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If A rises by 10 percent, and K and N are unchanged, by how much does Y increase?
A) 5%
B) 10%
C) 15%
D) 20%
B
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If net exports are negative
A) net foreign investment is positive. B) capital inflows must be less than capital outflows. C) net foreign investment is also negative. D) Both A and B are correct.
An individual firm hiring labor in a competitive labor market faces a(n)
a. horizontal supply curve of labor b. backward-bending supply curve of labor c. downward-sloping supply curve of labor d. upward-sloping supply curve of labor e. vertical supply curve of labor
"Every major contraction in the U.S. economy has either been created or greatly exacerbated by monetary instability. Every major inflation has been caused by monetary expansion." Which of the following economists made this statement?
a. Adam Smith b. John Maynard Keynes c. Milton Friedman d. Paul Samuelson
Self-adjustment of markets is assumed in:
A. Classical economic theory. B. Keynesian theory. C. Supply-side economic theory. D. The eclectic viewpoint.