If the slope of the per-worker production function is 1/2 in a given range, how will a $10,000 increase in capital per hour worked affect real GDP per hour worked in the same given range?
A) Real GDP per hour worked will increase by $10,000.
B) Real GDP per hour worked will increase by $5,000.
C) Real GDP per hour worked will increase by $20,000.
D) Real GDP per hour worked will decrease by $20,000.
B
You might also like to view...
Refer to Scenario 12.2. In this game, Eliza's tough strategy would lead to her preferred equilibrium of
A) Eliza donates a kidney and Jerome does not. B) both Eliza and Jerome donate a kidney. C) Jerome donates a kidney and Eliza does not. D) neither Eliza nor Jerome donates a kidney.
If firms meet together to decide on prices and outputs, there is
A. overt collusion. B. tacit collusion. C. price leadership. D. None of the above are correct.
The recession of 1973–1975 was unusual in that both inflation and unemployment increased at the same time. This suggests that the primary cause of the recession was an
A. inward shift of the aggregate demand curve. B. outward shift of the aggregate supply curve. C. inward shift of the aggregate supply curve. D. outward shift of the aggregate demand curve.
The Fed's communication:
A. is irrelevant, all that matters is the actions that it takes. B. is often used as a distraction to hide its true agenda. C. is itself an important tool of monetary policy. D. is the single most important tool of fiscal policy.