In the production function Y = f(K, NA), for a given state of technology, constant returns to scale implies that output (Y) will increase by 7% when
A) K or NA increase by 7%.
B) K and N increase by 7%.
C) N or A increase by 7%.
D) N and A increase by 7%.
E) all of the above
B
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Which of the following will create a demand for or a supply of currencies?
a. Trade in goods b. Trade in services c. Trade in financial instruments d. Any of the above.
Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to rise and monetary base to remain the same. b. Demand for real goods and services to remain the same and M2 money supply to fall. c. Demand for real goods and services to rise and M2 money multiplier to fall. d. Demand for real goods and services to rise and M2 money supply to rise.
The income of a typical worker in a country is most closely linked to which of the following?
a. population b. productivity c. market power d. government policies
Which market adjusts the quickest in response to shocks to the economy?
A. The goods market B. The labor market C. The asset market D. The asset, labor, and goods markets adjust at about the same speed to eliminate a disequilibrium in the macroeconomy.