The Solow residual attempts to measure the amount of output not explained by
A) technological progress.
B) the direct contribution of labor and capital.
C) economic projections.
D) the amount of a nation's human capital.
B
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Which of the following is the most likely result of a contractionary gap?
a. Market forces will increase nominal resource costs in the long run b. Short run aggregate supply will shift to the left c. Market forces will lower nominal resource costs d. Wages will increase causing wage push inflation
A country will have a balance-of-payments deficit when its exchange rate:
A. is flexible. B. is overvalued. C. equals the market equilibrium value. D. is undervalued.
In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 5 percent, then the output gap equals:
A. 1 percent. B. 2 percent. C. ?1 percent. D. ?2 percent.
M1 money includes all but which one of the following?
A. checkable deposits B. savings accounts C. paper money D. coins