If the steady-state capital—labor ratio is equal to the Golden Rule capital—labor ratio, then in the steady state
A) output per worker equals investment per worker.
B) output per worker equals depreciation per worker.
C) investment per worker is as large as possible.
D) consumption per worker is as large as possible.
D
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The classical theory was developed in the late 18th and early 19th centuries
A) and cannot be explained using the modern tool of the productivity function. B) and therefore is not accepted today. C) and still applies to the most developed nations today, though not to the less developed nations. D) and has proponents today who fear population growth and overpopulation. E) during a time of population decline.
Does monetary policy require the accompaniment of fiscal policy to change total spending?
A) No, because the Fed is an independent agency of the federal government. B) Yes, because monetary policy can contract total spending but cannot by itself expand it. C) Yes, because no policy is effective if it only changes nominal money values. D) Yes, if the demand for money tends to change in about the same direction and amount whenever the supply changes.
Refer to Table 2-14. If the two countries specialize and trade, who should export motorcycles?
A) There is no basis for trade between the two countries. B) They should both be importing motorcycles. C) Scotland D) Ireland
Refer to Figure 4-10. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What is the quantity of apartments demanded at the new price?
A) Q1 B) 0 C) Q0 D) Q*