One example of one-shot inflation occurs when the SRAS curve shifts leftward
Indicate whether the statement is true or false
True
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A problem with the neoclassical growth theory is its
A) prediction that population growth lowers the real wage rate. B) inability to explain persistent differences between countries' GDP growth rates. C) prediction that population growth raises the real wage rate. D) comparison of the economy to a perpetual motion machine.
Suppose a consumer's utility function is U(F0, F1) = F00.5F10.5, where F0 represents food consumed this year and F1 represents food consumed next year. For that utility function, the marginal utility of food consumed this year is 0.5 × (F1/F0)0.5 and the marginal utility of food consumed next year is 0.5 × (F0/F1)0.5. Suppose the consumer earns $100 this year and nothing in the next, food costs $1 per unit in both years, and the interest rate is 10%. How much food does she consume this year, and how much does consume tomorrow?
A. She consumes 45 units of food this year and 55 units of food next year. B. She consumes 50 units of food this year and 50 units of food next year. C. She consumes 55 units of food this year and 50 units of food next year. D. She consumes 50 units of food this year and 55 units of food next year.
How does the government protect depositors from the consequences of bank failure?
The Industrial Revolution refers to the rise of the modern factory system in ________ during the late eighteenth and early nineteenth centuries.
A. the United States B. England C. Germany D. France