Fretonia and Libstien are the same except Fretonia has a larger capital stock. Both countries undertake policies that raise their saving rates to the same higher level. We would expect that
a. both countries would have permanent increases in their growth rates, but the increase would initially be larger in Fretonia.
b. both countries would have permanent increases in their growth rates, but the increase would initially be smaller in Fretonia.
c. both countries would have temporary increases in their growth rates, but the increase would be larger in Fretonia.
d. both countries would have temporary increases in their growth rates, but the increase would be smaller in Fretonia.
d
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If a firm faces a downward-sloping demand curve, then:
A. the firm could be either a perfectly competitive firm or an imperfectly firm. B. the firm's production process exhibits economies of scale. C. the firm's marginal revenue from selling an additional unit of output is less than price. D. it is a perfectly competitive firm.
Since 1930, U.S. agriculture employment
a. has decreased while agricultural output has increased. b. has increased while agricultural output also has increased. c. has decreased while agricultural output also has decreased. d. has increased while agricultural output has decreased.
A key reason that the value of the dollar did not change relative to the Chinese yuan in the early 2000s was:
A. the U.S. Federal Reserve bought dollars to keep the value of the dollar from falling. B. the Chinese central bank sold dollars to keep the value of the dollar from rising. C. trade was balanced between the two nations. D. the Chinese central bank bought dollars to keep the value of the dollar from falling.
Picture a competitive market with the usual upsloping supply curve and downsloping demand curve. If the current price is creating a shortage, then market forces will cause the price to adjust and:
A. Quantity supplied will increase B. Quantity supplied will decrease C. Quantity demanded will increase D. Demand will decrease