Labor productivity can only increase if:
A. Labor increases faster than capital
B. Capital increases faster than labor
C. Labor increases while capital decreases
D. Labor and capital increase at the same rate
B. Capital increases faster than labor
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
In the life-cycle hypothesis, people are assumed to have a consumption pattern that leads them to save
A) at no point in their life. B) in the working years up to retirement. C) in their retirement years. D) in every year of their life.
When economists disagree, it is often over what type of issues?
Suppose a consumer has an income of $800 per month and that she spends her entire income each month on beer and bratwurst. The price of a pint of beer is $5, and the price of a bratwurst is $4 . Which of the following combinations of beers and bratwursts represents a point that would lie directly on the consumer's budget constraint?
a. 160 beers and 200 bratwursts b. 40 beers and 50 bratwursts c. 80 beers and 100 bratwursts d. 80 beers and 0 bratwursts