Does the recent increase in trend rate productivity experienced in the U.S. mean that the business cycle is dead?
Please provide the best answer for the statement.
No. The basic idea is that the trend line of economic growth is steeper for the recent increase in trend rate productivity. Nevertheless, it can still experience recession, which means that real output can fall below the now steeper trend line for a period of time.
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Demand and supply in the wheat market are given by:
QD = 2000 - 1000 P and QS = -500 + 1000 P where Q is millions of bushels and P is price per bushel. a. Find the equilibrium price and quantity. b. Suppose that the government wishes to support farm income and thus sets a price floor of $1.50/bushel. Find the size of the farm surplus. c. What is the cost of this program to the government?
A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a year. If doctors make $64,000 a year and nurses make $40,000 a year, then
A. the clinic is making the correct decision. B. the clinic is not making the correct decision because the additional patients per dollar spent on doctors is greater than the additional patients per dollar spent on nurses. C. the clinic could serve more patients by hiring more doctors and fewer nurses. D. the clinic could serve more patients by hiring fewer doctors and more nurses. E. a and d
Opportunity cost refers to
What will be an ideal response?
Which of the following statements about full employment is correct?I.Full employment means that the unemployment rate is less than 1/2 of 1 percent.II.Full employment means that the transaction costs associated with getting a job are zero.
A. I only B. II only C. Both I and II D. Neither I nor II