Which of the following theories predicts that there can be no sustained rise in real GDP per person above the subsistence level?
i. Classical growth theory
ii. New growth theory
A) i only
B) ii only
C) Neither i nor ii
D) Both i and ii
E) None of the above because whether the rise in real GDP per person is sustained or not depends on what created the rise.
A
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A) both the supply and the demand for automobiles. B) the supply but not the demand for automobiles. C) the demand but not the supply of automobiles. D) neither the supply nor the demand for automobiles.
Refer to Figure 3-4. At a price of $25, how many units will be supplied?
A) 400 B) 500 C) 600 D) 800
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A) Equilibrium GDP falls. B) Equilibrium GDP rises. C) Equilibrium GDP is not affected by a decrease in aggregate expenditure. D) Equilibrium GDP may rise or fall depending on the size of the decrease in aggregate expenditure relative to the initial level of GDP.
If the government wants to borrow money to build new highways; then the
A) interest rate will be higher. B) quantity of funds available in the market will increase. C) private investment will decrease. D) All of the above.