Over the past decade, a nation's real Gross Domestic Product (GDP) grew at a constant rate of 10 percent per year while its population grew 8 percent annually
Forecasters predict that during the coming decade, real GDP will continue to grow 10 percent annually, but the population growth rate is expected to drop to 6 percent annually. If the forecasters are correct, which of the following will be TRUE?
A) The annual rate of growth of per capita real GDP will decline from 2 percent to 1 percent.
B) The annual rate of growth of per capita real GDP will increase from 2 percent to 6 percent.
C) The annual rate of growth of per capita real GDP will increase from 2 percent to 4 percent.
D) The annual rate of growth of per capita real GDP will decline from 4 percent to 2 percent.
C
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The LM curve automatically shifts to the left when the intersection point of the IS and LM curves occurs at a point
A) beyond full-employment income. B) in the liquidity trap. C) less than full-employment income. D) where planned saving is less than planned investment.
The sale of U.S. currency and purchase of foreign currency by the Federal Reserve would shift the demand curve for U.S. dollars to the left
a. True b. False Indicate whether the statement is true or false
To find a firm's total revenue at every quantity, all you need to know is
a. the demand curve for its product. b. the demand curve for its product and its total cost. c. its profit-maximizing price and quantity. d. its total profit curve.
In a perfectly competitive market, if supply and demand fully reflect all of the costs and benefits associated with production and consumption, then total economic surplus is maximized when:
A. the market is in equilibrium. B. consumer surplus is greater than producer surplus. C. consumer surplus and producer surplus are equal. D. price controls keep prices low enough that most consumers can purchase the item.