Assume that in the economy real Gross Domestic Product (GDP) grows at a constant rate. There has just been a decrease in the rate of growth of the population. This implies that the
A. rate of growth of per capita real GDP will decrease.
B. rate of growth of capital accumulation will decrease.
C. rate of growth of capital accumulation will increase.
D. rate of growth of per capita real GDP will increase.
Answer: D
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
A firm will only invest when the marginal revenue product of capital is less than its rental cost.
Answer the following statement true (T) or false (F)
The figure above illustrates a linear demand curve. In the price range from $8 to $6, demand is ________ and in the price range $4 to $2, demand is ________
A) elastic; elastic B) elastic; inelastic C) inelastic; elastic D) inelastic; inelastic
A quintile is 20% (one-fifth) of a population group
Indicate whether the statement is true or false