Suppose that growth in output that can be attributed to growth in labor and capital is 6%. If output grows at a rate of 6%, it must be the case that
A. growth in capital exceeds growth in labor.
B. the economy is not experiencing technological progress.
C. the economy is experiencing technological progress.
D. growth in labor force exceeds growth in capital.
Answer: B
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A relatively flat LM curve implies that wide fluctuations in the goods sector cause
A) wide fluctuations in real output. B) wide fluctuations in the price level. C) wide fluctuations in the interest rate. D) crowding out of private investment.
"If the wage rate paid to one form of labor is twice the cost of another form of labor, the first type of labor must be twice as productive." Comment
What will be an ideal response?
All these factors will shift good X's supply curve, except
a. Bad weather b. Change in the price of X c. Changes in the price of raw materials to produce X d. A tax charged to good X
Refer to the above figure. Which panel is consistent with Ricardo's view on the supply of land?
A. Panel A B. Panel B C. Panel C D. Panel D