Physical capital makes workers ________, so a declining capital stock ________
A) more productive; helps an economy grow
B) less productive; helps an economy grow
C) more productive; hinders economic growth
D) less productive; hinders economic growth
C
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What is meant by terms of trade? How is it determined?
What will be an ideal response?
Our gross savings as a percentage of GDP has declined from over 20% in 1960 to _________ percent in 2009.
A. about 14 B. just under 12 C. a little over 10 D. about 6
Refer to the above figure. An increase in aggregate demand between real Gross Domestic Product (GDP) levels Y0 and Y1
A. would most likely result in some inflation. B. would have no effect on the price level. C. would cause price levels to fall. D. would not increase output since the economy is already working at full capacity.
A weakness in the concept of GDP is that it ignores income distribution.
Answer the following statement true (T) or false (F)