Which of the following can reduce the level of economic growth?
A. Crowding out.
B. Technological improvements.
C. Higher ratios of capital to labor.
D. Crowding in.
A. Crowding out.
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Which of the following best describes an externality?
A) something that is external to the economy B) a sales tax on a good in addition to the market price C) an effect of a transaction felt by someone other than the buyer or seller D) anything produced in other countries E) a change from what is normal
One event that undermined the belief that the Phillips curve represented a structural relationship was
A) the belief of Milton Friedman and Edmund Phelps that expected inflation remains constant. B) the erratic behavior of unemployment rates and inflation rates during the 1960s. C) the extended period of time that both unemployment and inflation remained high during the Great Depression. D) the increase in both the inflation rate and the unemployment rate in the 1970s.
"Government should not use price controls" is an example of:
A. Marshallian economics. B. normative economics. C. the art of economics. D. positive economics.
In Zimbabwe, inflation rose from an annual rate of 32 percent in 1998 to 100,000 percent in early 2009. Considering only the effects of this unexpected inflation, which of the following groups are helped by the inflation:
A. No one; inflation hurts everyone B. People living on fixed pensions C. Debtors D. Unemployed people