As capital deepening occurs, there will be increased real wages and economic growth
Indicate whether the statement is true or false
TRUE
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Okun's Law says that the difference between the unemployment rate and the natural unemployment rate determines
A) potential GDP. B) real GDP. C) the real interest rate. D) the gap between potential GDP and real GDP. E) the gap between the inflation rate and the unemployment rate.
Jennifer has just finished high school and is deciding whether to start working or go to college. She has already been offered a job that pays $35,000 a year. Four years of college will cost $12,000 each year. She would earn an extra $20,000 each year after she graduates for the 45 years she plans on working until she retires. Assume that the interest rate is 8.5%. What is Jennifer's opportunity cost of one year of college?
A. $12,000 B. $17,000 C. $35,000 D. $47,000
An economy is statically efficient if it is operating:
a. On its production possibilities frontier b. On its Lorenz Curve c. On its Friedman curve d. On its Samuelson curve e. All of the above
Budget cuts which lead to more lax protection of our borders will affect the labor market in California. It will cause a(n) ________ in labor supply, resulting in ________.
A. increase; higher wages B. decrease; higher wages C. decrease; lower wages D. increase; lower wages