When per capita real GDP is increasing, real output is growing
What will be an ideal response?
More rapidly than population
You might also like to view...
Stockholders receive returns on their financial investment in the form of ________ and ________.
A. coupon payments; capital gains B. interest payments; dividends C. capital gains; interest payments D. capital gains; dividends
You have the following information on personal consumption expenditures (C) and disposable income (Yd):
Year C Yd 1 300 400 2 500 700 a. Compute the marginal propensity to consume. b. Compute the amount of savings for years 1 and 2. c. Compute the marginal propensity to save.
Suppose the U.S. Drug Enforcement Agency steps up its efforts to control the illegal importation of cocaine into the United States. What is the likely effect on the market for illegal drugs in the United States?
a. The price of cocaine and the quantity imported will both increase. b. The price of cocaine is likely increase and the quantity entering the country decrease. c. The price of marijuana, a cocaine substitute grown domestically, will fall. d. The policy will have the least impact on those individuals whose demand for drugs is elastic. e. Demand for drugs is highly inelastic and these policies have little or no effect on consumption.
If the Fed increases the money supply, then 1/P
a. falls, so the value of money falls. b. falls, so the value of money rises. c. rises, so the value of money falls. d. rises, so the value of money rises.