The Federal Reserve decides to lower the discount rate. The resulting economic change will be represented by a(n):
a. upward movement along the short-run Phillips curve.
b. downward movement along the short-run Phillips curve.
c. rightward shift of the short-run Phillips curve
d. leftward shift of the short-run Phillips curve.
a
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According to the circular flow model, ________.
A. net investment must equal gross investment B. income must equal expenditures C. exports must equal imports D. saving must equal investment
Output per worker is 50, the saving rate is 15 percent, the population is growing at one percent, depreciation is 9 percent, and the capital-labor ratio is 80. Consumption per worker is ________
A) 37.5 B) falling C) 75 D) 68
Returns to scale refers to the change in output when
A) all inputs increase proportionately. B) labor increases holding all other inputs fixed. C) capital equipment is doubled. D) specialization improves.
Trade between nations usually means that
A. one country is richer than another. B. one country becomes richer while the other becomes poorer. C. both trading nations show some gains. D. one trading country is trying to “beggar its neighbor.”