Refer to Figure 27-3. In the graph above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by Congress and the president?
A) a decrease in government purchases
B) a decrease in income taxes
C) a decrease in interest rates
D) an increase in the money supply
B
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An assumption of classical growth theory is that when ________ the population growth rate ________
A) real GDP per person exceeds the subsistence level; increases B) people become more skilled; decreases C) the real wage rate falls; increases D) saving declines; decreases
Countries that pursued outward-oriented policies in the 20th century
a. experienced lower rates of economic growth than did countries that pursued inward-oriented policies. b. experienced higher levels of political instability than did countries that pursued inward-oriented policies. c. include Singapore, South Korea, and Taiwan. d. All of the above are correct.
Which region's agricultural system developed very differently from that of the rest of the nation?
A. the West B. the Midwest C. New England D. the South
The value of a worker's marginal product of labor:
A. only depends on a worker's stock of human capital. B. is lower for workers with more human capital. C. is not affected by a worker's stock of human capital. D. is higher for workers with more human capital.