Suppose the current level of output is 5000. A 10% increase in productivity would increase the current level of output to
A. 5050.
B. 5500.
C. 5100.
D. 6000.
Answer: B
Economics
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Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 2 percent, an initial deposit of $500 will lead to a total increase in deposits of
A) $250. B) $5,000. C) $25,000. D) $50,000.
Economics
An example of the problem of ________ is when a corporation uses the funds raised from selling bonds to fund corporate expansion to pay for Caribbean cruises for all of its employees and their families
A) adverse selection B) moral hazard C) risk sharing D) credit risk
Economics