What is long-run economic growth and how is it measured?
What will be an ideal response?
Long-run economic growth is the process by which productivity raises the average standard of living. It is measured by labor productivity, which is the quantity of goods and services that can be produced by one worker or by one hour of work.
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If players discount the future sufficiently, cooperation in infinitely repeated Prisoners' Dilemma games cannot emerge as a subgame perfect equilibrium.
Answer the following statement true (T) or false (F)
How does an increase in autonomous expenditure change real GDP in the short run? Does real GDP change by the same amount as the change in aggregate demand? Why or why not?
What will be an ideal response?
Recall the Application about how technological advances in another country may hurt the United States to answer the following question(s). In this Application, how is the United States hurt when the Chinese gain access to U.S. technology?
A. When China's access to technology causes the U.S. to lose comparative advantage in both high-tech and consumer goods. B. When China's access to technology causes the U.S. to export high-tech goods and import consumer goods. C. When China's access to technology causes the U.S. to import high-tech goods and export consumer goods. D. When China's access to technology causes the U.S. high-tech goods to become cheaper.
A perfectly competitive firm's short-run supply curve is at its lowest point when MC equals the minimum point of:
A) the average fixed cost curve. B) the marginal revenue curve. C) the average total cost curve. D) the average variable cost curve.