Other things the same, if a country raises its saving rate, when is growth of real GDP per person higher?
a. as the economy moves toward the long run and in the long run.
b. as the economy moves toward the long run, but not in the long run.
c. in the long run, but not as the economy moves toward the long run.
d. neither as the economy moves toward the long run, nor in the long run.
b
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Refer to the graph.
The economy begins at a level of output of $20 billion and experiences a one-year recession in which output declines by 4 percent. What is output in year 1?
A. $800 billion B. $19.2 million C. $800 million D. $19.2 billion
In a given year, suppose a company spends $100 million on intermediate goods and $200 million on wages, with no other expenses. Also assume that its total sales are $800 million. The value added by this company equals
A) $200 million. B) $300 million. C) $500 million. D) $700 million. E) $800 million.
The production possibilities curve bows out because
A. of the law of increasing additional cost. B. resources are not being fully utilized. C. production is efficient. D. production is inefficient.
Three-wheel cars made in North Edsel are sold for 5000 pounds. Four-wheel cars made in South Edsel are sold for 10,000 marks. The real exchange rate between North and South Edsel is four three-wheel cars for three four-wheel cars. The nominal exchange rate between the two countries is
A. 0.50 marks/pound. B. 1.50 marks/pound. C. 0.66 marks/pound. D. 2.00 marks/pound.