Suppose a constitutional amendment is passed that mandates a balanced federal budget every year and the President and Congress consistently carry this mandate out. This would be an example of

Suppose than an economy has output Y = A , that Y equals $19 trillion, capital K is $27 trillion, and labor L is 125 million workers. Given this information, what is the closest approximation of total factor productivity A?

A) less than 0.01 B) around 0.25 C) roughly 0.33 D) close to 0.4 E) exactly 144

Inferior goods typically obey the law of demand because the substitution effect tends to dominate the income effect

a. True b. False