In recent decades, economic growth has been much more rapid in South Korea than in the United States. What is the likely explanation for this fact?
The likely explanation is that South Korea's rapid growth is attributable to the catch-up effect.
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What factor changes the quantity of real GDP supplied and results in a movement along the AS curve?
What will be an ideal response?
"If Mexico is currently operating at a point beyond its production possibilities frontier, then there are unemployed resources in Mexico." Is this statement true or false? Briefly explain your answer
What will be an ideal response?
If the interest rate rises, the present value of property rises because the return is now higher
Indicate whether the statement is true or false
If UIP holds, the interest rate is 4%, and the foreign currency is expected to appreciate by 3%, then the foreign interest rate is approximately
a) 1% B) 3% C) 7% D) none of the above