One of the implications of new growth theory is that economic growth arises from
A) financial safety nets for the poor, such as Medicaid.
B) investments in knowledge.
C) reductions in the birth rate.
D) limits on international trade.
B
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An above full-employment equilibrium is
A) a theoretical possibility but cannot happen in reality. B) the equilibrium in which the economy is in most of the time. C) when real GDP exceeds potential GDP. D) the period of time when prices are falling.
The general-equilibrium analysis of a minimum wage applied to only some sectors of the economy suggests that
A) workers in all sectors will face increased wages. B) some workers in the covered sectors will lose their jobs and remain unemployed. C) some workers originally employed in the covered sectors will move to the uncovered sectors, driving down wages in the uncovered sectors. D) all workers will be worse off.
In a perfectly competitive market, the long-run industry supply curve is perfectly elastic at the minimum point of the ATC curve
a. True b. False Indicate whether the statement is true or false
Economists use the phrase "business cycle" when referring to fluctuations in
a. the rate of real output and employment. b. interest rates. c. the consumer price index. d. the general level of prices.