If a technological change occurs such that the production function shifts from q = 10K0.5 L0.5 to q = 10.5K0.3 L0.5, then the technological change is
A) both neutral and non-neutral.
B) neutral.
C) non-neutral.
D) Not enough information given.
A
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If Country A's real GDP is growing at 6 percent per year and Country B's real GDP is growing at 6 percent per year, then the standard of living is
A) growing more rapidly in Country A. B) higher in Country B. C) changing at the same rate in Country A and Country B. D) growing more slowly in Country A. E) changing at the same rate in Country A and Country B only if the rate of population growth is the same in both countries.
When ticket scalpers buy up hundreds of Chicago Cubs tickets the day tickets go on sale, they are
A) behaving unethically. B) hoping to buy high and sell low. C) hoping to buy low and sell high. D) ruining it for everyone else.
In the short run, the intersection of the aggregate demand and the short-run aggregate supply curves,
A) determines the equilibrium price level. B) is a point where there is neither a surplus nor a shortage of goods. C) determines the equilibrium level of real GDP. D) All of the above answers are correct.
Potential output
a. is defined as the level of real output that the economy could produce at high rates of resource utilization. b. only occurs when both the unemployment rate and inflation rate are zero. c. can be estimated by choosing benchmark measures of high resource utilization. d. Both a and c