During this year, nominal GDP in Syldavia was $720 billion and real GDP was $720 billion. The GDP price index in Syldavia in this year was
A) 0, because nominal GDP equaled real GDP.
B) 100.
C) 720.
D) -1.
E) 720 billion.
B
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How do government policies that enforce property rights affect economic growth?
What will be an ideal response?
Given the production function Y = A , if the rental price of capital is 0.133, Y = 690, and K = 1,728, what is the value of the exponent ?? If A = 1, and the real wage is 1.15, is this economy in a long-run equilibrium?
What will be an ideal response?
If the demand for widgets is inelastic, revenues will ________ if the price of widgets increases.
A. remain the same B. increase C. fall D. one cannot tell what will happen to revenues without specific elasticity numbers
Refer to the given figure and assumptions. Assume initially that government does not effectively block illegal immigration. If the government then finds a way to prevent all illegal immigrants from working in this labor market:
Assumptions: (1) Employers in this market are willing and able to ignore minimum wage laws;
(2) S d represents the supply of domestic-born (and legal immigrant) workers; (3) S t represents
the total supply of workers in this labor market (S d plus illegal immigrants); and (4) unless
otherwise stated, illegal immigration is not effectively blocked by the government.
A. 10,000 domestic-born workers will gain employment at the expense of 20,000 illegal
immigrants.
B. 20,000 domestic-born workers will gain employment at the expense of 20,000 illegal
immigrants.
C. 10,000 domestic-born workers will gain employment at the expense of 70,000 illegal
immigrants.
D. 10,000 domestic-born workers will gain employment at the expense of 50,000 illegal
immigrants.