A rise in the multifactor productivity index means that at each (K/N) we have (Y/N) ________, which shifts the (S/N) curve ________, resulting in a movement of the steady-state intersection to the ________
A) rising, downward, left
B) rising, upward, right
C) rising, downward, right
D) falling, upward, left
E) falling, downward, left
B
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Which of the following best describes a steady state?
A) Political stability is maintained by the state. B) The standard of living is increasing at a stable rate. C) Each firm in the economy receives a steady stream of income. D) Output per worker, consumption per worker, and capital per worker are constant.
The clearest indicator of a switch to a less expansionary fiscal policy is a
A) rise in the actual deficit. B) fall in the actual deficit. C) rise in the natural employment deficit. D) fall in the natural employment deficit.
The increase of sub-prime (including Alt-A) loans as a share of the total from 2001-2005 was an important contributing factor to the economic crisis of 2008 because
a. these loans initially reduced the demand for housing. b. these loans initially reduced housing prices. c. the default and foreclosure rates on these loans are several times higher than conventional loans to prime borrowers. d. the default and foreclosure rates on these loans are considerably lower than conventional loans to prime borrowers.
In the context of the aggregate-demand curve, when the price level increases, households increase their holdings of money, interest rates increase, and spending on investment goods decreases because of the ________ effect.
a) wealth b) interest-rate c) exchange-rate d) net-export