Refer to the scenario above. Which of the following statements will be true in steady state?
A) Economy A will have a lower capital stock and a greater GDP than economy B.
B) Economy A will have a greater capital stock and a lower GDP than economy B.
C) Economy A will have a greater capital stock and GDP than economy B.
D) Economy A will have a lower capital stock and GDP than economy B.
D
You might also like to view...
When personal savings rates are ________, it takes ________ change in government purchases to have a given amount of impact of real GDP.
A. higher; more B. unstable; less C. unstable; more D. higher; less
The observation that goods and services flow in one direction and money payments flow in another direction is the principle behind
A) a barter economy. B) the circular flow of income. C) a pure command economy. D) the double coincidence of wants.
The natural rate of unemployment is fixed and unchanging
Indicate whether the statement is true or false
If the United States raises tariffs on foreign goods, it may achieve
A. Higher production possibilities. B. Greater profitability of import-competing firms. C. Higher efficiency in domestic production. D. Higher U.S. exports.