Which set of changes is definitely predicted to lower Real GDP in the short run?
A) Interest rates rise and wage rates fall.
B) Interest rates rise and there is a beneficial supply shock.
C) Interest rates rise and labor productivity increases.
D) Interest rates rise and individuals expect lower (future) incomes.
E) c and d
D
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Explain the concept of "learning by doing" with respect to infant industry protection
What will be an ideal response?
The two functions that are critical to the key role that commercial banks play in stabilizing the economy are accepting deposits and making loans
Indicate whether the statement is true or false
For a particular good, a 5 percent increase in price causes a 2 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?
a. There are many close substitutes for this good. b. The good is a luxury. c. The market for the good is broadly defined. d. The relevant time horizon is long.
The Italian government collects a smaller amount of the taxes it is owed than the U.S. government. Other things being equal,
A. U.S. and Italian GDP should be equal. B. U.S. GDP may be higher than Italian GDP. C. U.S. GDP should be lower than Italian GDP. D. U.S. residents are better off than Italian residents.