The behavior of the Solow residual suggests that when current total factor productivity increases
A) it becomes more difficult to predict future total factor productivity.
B) future total factor productivity is also likely to increase.
C) such increases are temporary, so we can draw no conclusions about the likely behavior of future total factor productivity.
D) future total factor productivity is likely to decrease.
B
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Tickets to the Indiana-Purdue basketball game are usually sold out far in advance of game day and many people are disappointed because they cannot see the game. This suggests
a. the price of the tickets must be higher than the equilibrium price because people consider them valuable b. the price is set below the equilibrium level c. the price is set above the equilibrium level d. there is no excess demand or supply e. the people deciding on what price to charge considered only the fixed capacity of the stadium
Other things being equal, an increase in the U.S. rate of inflation is likely to cause an increase in the:
A. Quantity of U.S. exports B. Quantity of U.S. imports C. Demand for U.S. dollars D. International value of the U.S. dollar