The slope of the per-worker production function diminishes as the amount of capital per-worker increases. This is a reflection of the law of _____
a. increasing marginal returns
b. diminishing marginal returns
c. constant marginal returns
d. first diminishing then increasing marginal returns
e. demand
b
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________ believed that economic downturns would generally reverse themselves quickly without policy intervention.
A. Neither Keynes nor the classical macroeconomic theorists B. Keynes C. Classical macroeconomic theorists D. Both Keynes and the classical macroeconomic theorists
According to Angus Madison, a leading authority in the area, world per capita GDP
a. increased by about 50 percent during the 800 years following year 1000 . but it increased by nearly tenfold during the past 200 years. b. increased by nearly tenfold during the 800 years between 1000 and 1813, but it increased by only 50 percent during the past 200 years. c. has grown steadily during the past 1000 years. d. Grew at an annual rate of more than 2 percent during 1000-1813, but the annual growth rate has declined as the population increased during the past 200 years.
In a certain economy, the components of planned spending are given by: C = 500 + 0.8(Y - T ) - 300rI P= 200 - 400rG = 200NX = 10T = 150 Given the information about the economy above, what would be the impact on autonomous expenditures of a one-percentage-point increase in the real interest rate (r )?
A. Autonomous expenditures would decrease by 35 units. B. Autonomous expenditures would decrease by 700 units. C. Autonomous expenditures would decrease by 7 units. D. Autonomous expenditures would increase by 35 units.
Historical actions indicate that the Fed's primary goal of monetary policy over the past 30 years has been to
A) maintain high interest rates. B) keep employment rates low. C) limit the availability of consumer credit. D) prevent high rates of inflation.