What method is used as the standard way to measure the effect of debt in an economy?
What will be an ideal response?
the stock of debt relative to the GDP
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Autonomous spending rises by $10 billion and Real GDP rises by $50 billion. What does the marginal propensity to save equal?
A. 0.10 B. 0.20 C. 0.80 D. 0.90 E. 0.50
Indians and Indian-Americans have played a pivotal role in powering Silicon Valley's digital revolution. The emigration of talented people from countries like India to countries like the United States is often called:
A. credentialism. B. the brain drain. C. Malthusianism. D. outsourcing.
For this question, assume that a country experiences a permanent reduction in its saving rate. Which of the following will occur as a result of this reduction in the saving rate?
A) a permanently slower growth rate of output B) no permanent effect on the level of output per capita C) a permanently lower level of output per worker D) both A and B E) both B and C
The figure above shows how the PPF for cell phones and new cell-phone factories can expand. In the figure, if the economy produced 4 million cell phones using the resources efficiently, the PPF would
A) expand farther than shown in the figure. B) expand along the vertical axis and not along the horizontal axis. C) expand, but not as far as shown in the figure. D) expand evenly along both axes. E) not expand.