If changes in economic policy could cause the growth rate of real GDP to increase by 1% per year for 100 years, then GDP would be ________ % higher after 100 years than it would have been otherwise
A) 1.3
B) 2.0
C) 2.7
D) 3.8
C
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Which of the following CORRECTLY characterize principals and agents in important examples of the principal-agent problem?
A) In the doctor/patient relationship, the patient is the principal and the doctor is the agent. B) In the lawyer/client relationship, the client is the principal and the lawyer is the agent. C) Both of the above answers are correct. D) Neither of the above answers is correct.
Ronny's Pizza House operates in the perfectly competitive local pizza market. If the price of pizza cheese increases (ceteris paribus), what is the expected impact on Ronny's profit-maximizing output decision?
A) Output increases to cover the higher input cost B) Output increases because the marginal cost curve shifts upward C) Output decreases because the marginal cost curve shifts upward D) Output decreases because the price of pizza must also increase
An important explanation for the current account deficit and capital account surplus in the United States is that
a. we buy fewer goods from foreigners than they buy from us, and foreigners find the United States an attractive place to invest. b. we buy more goods from foreigners than they buy from us, and foreigners find the United States an attractive place to invest. c. we buy fewer goods from foreigners than they buy from us, and Americans find foreign countries an attractive place to invest. d. we buy more goods from foreigners than they buy from us, and Americans find foreign countries an attractive place to invest.
Which of the following would you expect to see for borrowers with a high risk of default, compared to borrowers with a low risk of default?
A. A supply curve that is further to the right B. A surplus of loans C. A demand curve that is further to the left D. A higher interest rate