The Solow growth model predicts that a lower labor force growth rate will lead to
A) a decreased steady state and higher break-even investment.
B) higher productivity and a higher standard of living.
C) a lower saving rate and decreased investment.
D) a higher rate of dilution and lower break-even investment.
B
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When both internal and external costs for using a scarce resource are included, then there is
A) an increase in the production of the good. B) a negative externality. C) an increase in the price of the good. D) a positive externality.
A bank that has no excess reserves
A) cannot create loans. B) is not in equilibrium. C) is on the brink of bankruptcy. D) has no required reserves.
Large countries are ________ susceptible to immiserizing growth than small countries because when large countries expand their exports, their terms of trade
A. more; worsen. B. less; worsen. C. more; improve. D. less; improve.
Refer to the above graph. The shift of the budget line from AB to CD is consistent with:
A. decreases in the prices of Good 1 and Good 2 in equal proportion. B. an increase in the price of Good 1 and no change in the price of Good 2. C. a decrease in the price of Good 2 and no change in the price of Good 1. D. a decrease in money income.