The people of Country X save 10 percent of their income, and the people of Country Y save 25 percent of their income. If these respective saving rates persist forever, will one country or the other enjoy a higher rate of income growth forever? Explain
In the long run, a higher saving rate leads to higher levels of productivity and income per person but not to permanently higher growth in these variables. Therefore, the difference in saving rates between the two countries does not result in permanently-different rates of income growth.
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Refer to Table 20-19. Looking at the table above, what is the rate of growth of the average price level from 2014 to 2015?
A) 1% B) 2% C) 3% D) 4% E) 5%
What is the term used for the process by which an entrepreneur creates or recognizes a new and better product, acquires it, and brings it to market, making older substitutes obsolete?
a. creative destruction b. innovation c. the substitution effect d. backward-bending innovation
Which of the following individuals first discovered the relationship between unemployment and inflation for the United States?
A) Solow and Friedman B) Samuelson and Solow C) Friedman and Phillips D) Friedman and Phelps
Refer to the graph shown. When price declines by 11 percent, quantity supplied falls by 8 percent. Which curve best demonstrates the elasticity in this example?
A. A B. B C. C D. None of the answers is correct.