What are the long-run effects on productivity and income of an increase in the saving rate?
In the long run, a higher saving rate leads to higher levels of productivity and income per person but not to higher growth in these variables.
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Both firm A and firm B emit 300 tons of pollution. Suppose both firm A and firm B have permits that allow each to emit 100 tons of pollution
If it costs $5,000 for firm A to eliminate 100 tons of pollution and it costs firm B $6,000 to eliminate 100 tons of pollution, then A) firm B will sell its permits to firm A for a price above $6,000. B) firm A will sell its permits to firm B for a price below $6,000. C) firm A will sell its permits to firm B for a price above $6,000. D) firm B will sell its permits to firm A for a price below $6,000.
If policy makers estimate the natural rate of unemployment incorrectly, _____
a. their policies will cause deflation in the long run b. their policies will cause even more unemployment in the long run c. the economy will stay below its potential GDP in the long run d. the economy will tend toward the level of unemployment the policy makers believe is correct e. policies that appear to be successful in the short run will lead to further economic problems
If an increase in the price of Good A causes an increase in the demand for Good B, Goods A and B are said to be complements
a. True b. False Indicate whether the statement is true or false
The demand schedule reports the quantity demanded at
A. a zero price. B. many different prices. C. the average of all prices. D. the market equilibrium price.