In the absence of productivity growth, in a steady-state economy
A) output per worker and consumption per worker remain constant over time.
B) output per worker remains constant over time, but consumption per worker grows over time.
C) output per worker grows over time, but consumption per worker remains constant over time.
D) output per worker and consumption per worker both grow over time.
A
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Assuming an inflationary gap exists, classical economists believe that flexible wages will restore full employment
a. True b. False Indicate whether the statement is true or false
How does a change in the quantity of money change the interest rate in the long run?
What will be an ideal response?
Suppose that during a given month 500,000 persons quit their job to become self-employed. This might give __________ bias to the __________ indicator
A) an optimistic; unemployment rate B) a pessimistic; unemployment rate C) an optimistic; payroll employment D) a pessimistic; payroll employment
When the average total cost curves for firms are unaffected by the entry of other firms,
a. it is an increasing-cost industry b. it is a decreasing-cost industry c. the market's equilibrium price will eventually be restored after the market demand increases d. firms will charge a higher price when demand rises e. the long-run supply curve is positively sloped