A key element of the classical growth theory is that
A) low taxes promote economic growth.
B) an increase in population leads to increase in labor supply and a decline in real GDP per person.
C) economic growth can be sustained as long as government intervention does not occur.
D) increases in technology drive economic growth.
E) market forces drive economic growth.
B
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What are the two most common reasons for a sovereign debt crisis?
What will be an ideal response?
When the nominal exchange changes from 110 yen per dollar to 120 yen per dollar, the dollar has:
A. appreciated. B. depreciated. C. become undervalued. D. become overvalued.
If the price level increases, but workers' money wage rates remain constant,which of the following is TRUE?
I. The quantity of labor demanded will increase. II. The real wage rate will decrease. III. The demand for labor curve shifts rightward. A) I only B) I and II C) II and III D) I, II and III
Market failure means that
A) the strike organized by unionized employees fails to achieve its goal. B) too many outdated products are offered for sale in the local supermarket. C) there is overallocation or underallocation of resources to certain economic activity. D) an unexpectedly harsh winter shuts down a factory.