Suppose the stock of capital increases by 2% and employment
increases by 2%. Given this information, we know that
output per capita will increase by 6%.
output will increase by 4%.
output per capita will increase by less than 4% and more than
2%.
none of the above.
For this question, assume that a country experiences a permanent
increase in its saving rate. Which of the following will occur as a
result of this increase in the saving rate?
a permanently faster growth rate of output.
a permanently higher level of output per capita.
a permanently higher level of capital per worker.
all of the above.
both B and C.
Suppose there is a reduction in expected future output. This
will cause which of the following to occur?
the LM curve to shift up in the current period.
the IS curve to shift right in the current period.
the LM curve to shift down in the current period.
the IS curve to shift left in the current period.
Which of the following best defines time inconsistency?
the increasing inaccuracy of econometric models as the time
horizon becomes longer.
the tendency for the rise in output to be greater in the early
years of a president's term, and smaller in the later years.
the effects of political electoral cycles on the business
cycle.
the tendency for policymakers to deviate from a pre-announced
optimal policy once agents in the economy have adjusted their
behavior and expectations based on the pre-announced policy.
the effect of economic uncertainty on short-run stabilization
policy.
Suppose the stock of capital increases by 2% and employment increases by 2%. Given this information, we know that output
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answerhappygod
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Suppose the stock of capital increases by 2% and employment increases by 2%. Given this information, we know that output
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