Other things the same, continued technological progress and continued increases in the money supply would unambiguously lead to
a. rising prices only.
b. rising real GDP only.
c. rising prices and rising real GDP.
d. neither rising prices nor rising real GDP.
b
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Which of the following ideas are included in classical growth theory?
I. Subsistence real GDP per person II. Growth in real GDP per person is temporary. III. Technological change induces investment. A) I only B) I and II C) II and III D) I, II and III
The U.S. outsourcing debate reminds us that:
a. International trade is a zero-sum game. b. Outsourcing provides few, if any, benefits to the nation from which outsourcing occurs. c. Outsourcing is a way for companies to transform fixed costs into variable costs. d. All of these statements are correct.
In the context of an ultimatum game, the first player proposes a split of $100 to a second player. The second player can either accept the split or both players receive $0 . A rational second player will accept any offer a. greater than $0
b. equal to $50. c. greater than $50. d. that she thinks is fair.
Why are long-run costs always less than or equal to short-run costs?
a. In the long run, technological change can occur, leading to lower costs over time. This means that long-run costs will always be less than or equal to short-run costs at the same level of output. b. In the long run, employees are more productive so the firm's costs will be lower. This means that long-run costs will always be less than or equal to short-run costs at the same level of output. c. In the long run, all inputs are flexible so the firm can minimize all costs. This means that long-run costs will always be less than or equal to short-run costs at the same level of output. d. In the long run, firms can choose how much output to produce based on demand, which will lead to lower costs. This means that long-run costs will always be less than or equal to short-run costs at the same level of output.