A striking conclusion of the Solow model is that in the absence of productivity growth, in the long run
A) the economy reaches a steady state.
B) consumption per worker equals the capital stock per worker.
C) consumption per worker equals output per worker.
D) consumption per worker equals investment per worker.
A
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If economists forecast a decrease in aggregate expenditure, which of the following is likely to occur?
A) Inventories will fall. B) GDP will rise. C) GDP will fall. D) Wages will rise.
Refer to Figure 15-15. If the government regulates Erickson Power Company so that the firm can earn a normal profit, the price would be set at ________ and the output level is ________
A) P3, Q2 B) P1, Q4 C) P2, Q2 D) P2, Q3
According to the efficient market hypothesis, which of the following statements is not correct?
a. Stock market prices tend to rise today if they rose yesterday. b. As judged by the typical person in the market, all stocks are fairly valued all the time. c. At the market price, the number of shares being offered for sale matches the number of shares people want to buy. d. All of the above statements are incorrect.
Describe the impact of the substitution effect and the income effect on an individual’s labor supply curve.
What will be an ideal response?