Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that output (Y) is
A) constant.
B) growing at a rate of gA + gN.
C) growing at a rate of gN.
D) growing at a rate of gA.
E) growing at a rate of gA - gN.
B
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The money demand curve will shift to the right if:
A. the nominal interest rate decreases. B. the price level increases. C. the nominal interest rate increases. D. the price level decreases.
Rent controls are
A) when rents are set above the market clearing level to aid landlords. B) used to provide incentives to contractors to build new apartments. C) used to generate revenue for the local government. D) when rents are set below the market clearing level.
When constructing a production possibilities frontier, which of the following assumptions is not made?
a. The economy produces only two goods or two types of goods. b. Firms produce goods using factors of production. c. The technology available to firms is given. d. The quantities of the factors of production that are available are increasing over the relevant time period.
A dramatic and sustained increase in oil prices would most likely:
A. increase demand-pull inflation. B. decrease demand-pull inflation. C. increase cost-push inflation. D. decrease cost-push inflation.