According to the new classical theory, economic policies are effective
A. only if they are formed with rational expectations.
B. only if they are unanticipated.
C. only if they are expansionary in nature.
D. only if they are anticipated.
Answer: B
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Nonexcludability generates a problem because individuals have an incentive to_____
a. free ride b. profit c. fight d. steal
The marginal physical product of labor is
a. the slope of the total output curve at the relevant point. b. the negative of the slope of the total output curve at the relevant point. c. the slope of the line connecting the origin with the relevant point on the total output curve. d. the negative of the slope of the line connecting the origin with the relevant point on the total output curve.
For a competitive firm, which of the following quantities is equal to marginal cost?
a. wage marginal product of labor b. wage value of marginal product of labor c. price marginal product of labor d. price value of marginal product of labor
Over the past year, output grew 5%, capital grew 5%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.5 and 0.5, respectively, how much did productivity grow?
A. 1.0% B. 0.5% C. 1.5% D. 2.0%