The period in the U.S. economy from 1995 to 2009 is characterized by:
A. a higher trend rate of saving.
B. a higher natural rate of unemployment.
C. a higher trend rate of productivity growth.
D. the end of the business cycle.
Answer: C. a higher trend rate of productivity growth.
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American companies can borrow funds
A) only in U.S. financial markets. B) only in foreign financial markets. C) in both U.S. and foreign financial markets. D) only from the U.S. government.
The assumption that nothing changes except the variables being studied is
A) the ceteris paribus assumption. B) the rationality assumption. C) positive economic analysis. D) normative economic analysis.
A central bank disinflates. Output is 4% less for one year, 3% less the next year, and 2% less the third year. If inflation fell by 2 percentage points, what was the sacrifice ratio?
Mike's housekeeper charges $30 for mowing his lawn. Refer to the scenario above. Which of the following will happen if Mike decides to mow his lawn by himself?
A) GDP will increase. B) GDP will decrease. C) Per capita income will increase. D) GDP will remain unchanged.