Which expression best represents the break-even level of investment when incorporating labor-augmenting technological change into the Solow growth model?
A) (d + n + g)k
B) (d + n)k
C) (d + n ) / (k + g)
D) (d + n + k) / (gk)
A
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Refer to Figure 13-7. Which of the following is the area that represents the profit or loss experienced by the firm?
A) a loss represented by the rectangle P2uvP1 B) a loss represented by the rectangle P2uwP0 C) an accounting profit equal to P1vwP0 D) a loss represented by the rectangle P1vwP0
Which of the following are created to calculate an overall average change in relative prices over time?
a. baskets of goods and services b. base years c. price indexes d. inflation rates
Economists refer to expenditures on training, education, and skill development designed to increase the productivity of an individual as
a. overhead expenditures. b. investments in human capital. c. non-exhaustive expenditures. d. social capital.
According to the theory of rational expectations, the government can influence output
A. with appropriate fiscal and monetary policy. B. in the short run, but not in the long run. C. without affecting the price level. D. only by making unexpected changes in aggregate demand.