New Keynesian macroeconomic theory emphasizes the role of "sticky" prices in the economy
Indicate whether the statement is true or false
TRUE
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The implication of the Solow model is that for sustained growth:
A) the ratio of savings rate to depreciation rate should be constant as the economy grows over time. B) the ratio of savings rate to depreciation rate should increase as the economy grows over time. C) the ratio of capital stock to GDP should decreases the economy grows over time. D) the ratio of capital stock to GDP should be constant as the economy grows over time.
According to this Application, the decline in population caused by the Black Death resulted in ________ real wages and ________ total output
A) lower; less B) lower; more C) higher; more D) higher; less
What is the price of a TV in an open economy without a quota?
A. $75 B. $125 C. $100 D. $150
The goal of expansionary fiscal policy with respect to output is to:
A. increase spending and aggregate demand to get back to an output level the government is comfortable with. B. decrease government spending in an attempt to get the private economy back on track. C. increase spending and shift aggregate demand to the left in an effort to reach full employment output. D. increase spending and shift aggregate demand to the right in an effort to reach full employment output.