If capital and labor each grow 5% in a year, the elasticities of output with respect to capital and labor sum to one, and productivity grows 2% in the year, by how much does output grow during the year?
A. 2%
B. 3%
C. 7%
D. 5%
Answer: C
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A) gross national product. B) national income. C) deprecation. D) disposable personal income.
A depreciating currency makes foreign inputs cheaper and shifts the aggregate supply curve outward
a. True b. False Indicate whether the statement is true or false
Citizens in the U.S. are not concerned with the financial well-being of their bank due to which of the following?
A. The stability of the economy B. The FDIC C. Government regulation of the banking sector D. The improvement in the reputation of bankers
To find the optimal level of provision for a public good, the government must know
A. the price elasticity of demand of each buyer. B. the supply curve of the government. C. everyone's preferences. D. the marginal revenue of selling the good.