As actual output falls below the potential level in the short run, which of the following is most likely to occur?
a. More resources will become unemployed.
b. The price level will increase
c. Real GDP will increase.
d. Nominal GDP will remain constant.
e. The natural rate of unemployment will fall.
a
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Two countries, Rhodia and Rubium, have identical production functions of the form:
Y = A × K0.25 × H0.75 Both countries have the same amount of capital stock and use the same technology. However, the total efficiency units of labor available in Rhodia is higher than that in Rubium. Which of the following is likely to be true in this case? A) The poverty rate in Rhodia is likely to be higher than that in Rubium. B) The gross domestic product of Rhodia is higher than that in Rubium. C) The gross domestic product of Rubium is higher than that in Rhodia. D) The Human Development Index of Rhodia is lower than that of Rubium.
Trade war occurs when, after a tariff is imposed, other countries retaliate with their own tariff
Indicate whether the statement is true or false
A technological change that positively affects business expectations will: a. cause a rightward shift of the investment demand curve
b. cause a leftward shift of the investment demand curve. c. cause an upward movement along the investment demand curve. d. cause a downward movement along the investment demand curve. e. make the investment demand curve upward sloping.
How can government policy stimulate economic growth?
a. increasing spending on Social Security payments b. decreasing spending on research and development forcing it to be more efficient c. increasing research and development of new technology d. decreasing spending to end the budget deficit