In the basic model with an AD and LRAS curve only, if spending growth is 10% and the Solow growth rate falls from 5% to 3%, then inflation will:
What will be an ideal response?
increase from 5% to 7%
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Privatizing a commons tends to lead to a faster depletion of the resource
Indicate whether the statement is true or false
The size of the circular flow
a. measures the level of household purchases from business. b. measures the level of income and output. c. increases if there are more planned leakages. d. measures the level of prices.
Which of the following is correct?
a. In a closed economy, equilibrium in the market for loanable funds occurs where saving = investment. b. Investment is the source for the supply of loanable funds. c. If there is a surplus in the market for loanable funds, the interest rate rises. d. All of the above are correct
Four firms control the market for a particular good, resulting in an HHI of 2,900. Total industry sales are $500, and it is known that two firms each have sales of $175. If each of the remaining two firms have the same sales, then we can conclude that the remaining two firms each have a market share of:
A. 0.15. B. $75. C. $125. D. 0.50.