Explain how the decrease in the birthrate may lower economic growth
Please provide the best answer for the statement.
The birthrate in many industrial nations has been decreasing below the replacement level of 2.1. This means that overall populations are shrinking. With a falling birthrate, the number of workers will fall once those individuals have reached working age. The fewer the workers the lower the number of hours worked. This decreases our Real GDP (Real GDP = hours of work x labor productivity).
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This school of thought argues that because people anticipate the consequences of announced government policy and incorporate these anticipated consequences into their present decision making, people end up undermining the government policy. What is it?
a. Neo-Keynesian. b. Keynesian. c. Monetarist. d. Supply-side. e. Rational expectations.
If a local ready-mix cement company is the only producer of cement in the local market, the monopoly power of the firm will
a. be small if entry barriers into the local market are high. b. depend on how many other sellers of similar products there are in the national market. c. be total since there are not any other sellers of the same product in the local market. d. be minimal if the entry barriers restricting competition from other firms are low.
What factors determine the vertical shape of the aggregate supply curve in the long-run? Explain.
What will be an ideal response?
Use the following graph to answer the next question.
Which line in the graph would best illustrate the supply of money curve?
A. Line 4 B. Line 3 C. Line 2 D. Line 1