In the long run, a higher saving rate
a. cannot increase the capital stock.
b. means that people must consume less in the future.
c. increases the level of productivity.
d. None of the above is correct.
c
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Refer to Table 4-7. Suppose that the quantity of labor supplied increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $12.50; Q = 630,000 B) W = $8.50; Q = 550,000 C) W = $11.50; Q = 610,000 D) W = $9.50; Q = 610,000
What are the effects of an expansionary monetary policy on interest rates and output in an open economy with floating exchange rates?
What will be an ideal response?
Which of the theory is better to think about policy?
A) game theory B) optimal control theory C) expectations theory D) none of the above
Refer to the table. The equilibrium interest rate in this economy is:
A. 3 percent.
B. 4 percent.
C. 5 percent.
D. 6 percent.