Which of the following is likely to lead to an increase in GDP per capita of a country?
A) An increase in the capital stock of the economy
B) An increase in the unemployment rate in the country
C) An increase in the tax rates in the country
D) An increase in the interest rate in the country
Answer: A) An increase in the capital stock of the economy
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Assume the total real output of a developing country increases from $8 billion to $8.2 billion while its population expands from 14 to 15 million people from one year to the next. Over the year, real GDP per capita has ________.
A. decreased by $25 per person B. increased by $533 per person C. decreased by $533 per person D. increased by $25 per person
In the Keynesian model, if planned saving is greater than planned investment,
a. the economy will expand. b. unemployment will rise. c. the marginal propensity to consume will decline. d. the rate of interest will rise.
Improvements in the productivity of labor will tend to: a. increase the supply of labor
b. increase the demand for labor. c. decrease the supply of labor. d. decrease the demand for labor.
The portion of deposits that banks need to hold at the Central Bank is:
(a) The required reserve ratio; (b) The discount rate; (c) The open market operation; (d) The interest rate.