A country's rate of real GDP growth is 3% per year. Its population is growing 4% per year. At what rate is its real GDP per capita changing?
A. Real GDP per capita is increasing by 0.75%.
B. Real GDP per capita is increasing by 7%.
C. Real GDP per capita is decreasing by 1.33%.
D. Real GDP per capita is decreasing by 1%.
Ans: D. Real GDP per capita is decreasing by 1%.
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A product's price elasticity of demand is likely to be greater
A) if it only has a few substitutes. B) if consumers spend a small proportion of income on the product. C) the less time consumers have to adjust to price changes. D) if the product is a luxury good rather than a necessity. E) Both answers C and D are correct.
An establishment survey is used to calculate
A) the unemployment rate. B) the level of payroll employment. C) both the unemployment rate and the level of payroll employment. D) neither the unemployment rate nor the level of payroll employment.
A recessionary gap is usually closed in the long run by a(n): a. rightward shift of the short-run aggregate supply curve
b. leftward shift of the short-run aggregate supply curve. c. rightward movement along a fixed short-run aggregate supply curve. d. decrease in aggregate demand. e. leftward movement along a fixed short-run aggregate supply curve.
Sources of market failure include
A. imperfect information. B. private goods. C. inflation. D. perfect competition.