If the price of lumber rises, then, in the market for sawdust
A) the supply curve of sawdust shifts leftward.
B) the supply curve of sawdust shifts rightward.
C) there is a movement downward along the supply curve for sawdust.
D) there is a movement upward along the supply curve for sawdust.
B
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Country A has a capital—labor ratio that is initially twice as big as that of country B, but neither is yet in a steady state. Both countries have the same production function, f(k) = 6k1/2
Country A has a 10% saving rate, 10% population growth rate, and 5% depreciation rate, while country B has a 20% saving rate, 10% population growth rate, and 20% depreciation rate. (a) Calculate the steady-state capital—labor ratio for each country. Does the initial capital—labor ratio affect your results? (b) Calculate output per worker and consumption per worker for each country. Which country has the highest output per worker? The highest consumption per worker?
The price elasticity of demand for gasoline measures the
a. responsiveness of gasoline producers to changes in the quality of gasoline. b. responsiveness of customers to changes in the price of gasoline. c. responsiveness of consumer preferences to changes in the quality of gasoline. d. both a and c above.
The Samuelson-Solow version of the Phillips curve states that
A) there is an inverse relationship between the wage inflation rateand unemployment B) there is a direct relationship between the wage inflation rateand unemployment. C) there is an inverse relationship between price inflation andunemployment. D) there is a direct relationship between price inflation and unemployment. E) a and b
The Keynesian recommendation for a policy response to a recession consists of
A. increased government spending with tax increases. B. increased government spending with tax cuts. C. decreased government spending with tax cuts. D. decreased government spending with tax increases.