Which of the following is consistent with classical growth theory?
A) Real GDP per person will increase because technological change induces investment.
B) Real GDP per person will never permanently increase.
C) Competition destroys innovation and decreases profit.
D) As real GDP increases, there will be a decrease in the rate of population growth.
B
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Which of the following describes bundling?
a. Selling multiple products as one product b. Allowing customers to buy one product if they also buy another c. Regulating the number of reduced-priced products d. One firm buying the rights to sell the products of another firm
The intersection of the aggregate supply curve and the aggregate demand curve occurs at the economy's equilibrium level of
A) real investment and interest rate B) real disposable income and unemployment C) real national output and the price level D) government expenditures and taxes E) imports and exports
Usually, price elasticities of supply are
A. considered short-run adjustments due to supply constraints. B. positive, because higher prices yield larger quantities supplied. C. an inverse relationship between price and quantity supplied. D. ordinarily a negative number based on the law of supply.
Refer to the graph shown. Assume the economy is in short-run equilibrium at point A below potential output. The government opts for an expansionary fiscal policy that shifts the AD curve from AD0 to AD1 in an attempt to pull the economy out of the recession. An economist with a functional finance view, who also recognizes that there will be a certain degree of crowding out, would conclude that the economy will likely end up at point:
A. A. B. B. C. C. D. D.