In the Solow growth model, countries with identical total factor productivities, identical labor force growth rates, and identical savings rates
A) always have identical levels of capital per worker and output per worker.
B) in equilibrium, have identical levels of capital per worker and output per worker.
C) in equilibrium, have identical levels of capital per worker but not necessarily identical levels of output per worker.
D) in equilibrium, have identical levels of output per worker but not necessarily identical levels of capital per worker.
B
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In the above figure, the short-run macroeconomic equilibrium is at the price level ________ and the real GDP level ________
A) 110; $16.5 trillion B) 120; $16 trillion C) 100; $16 trillion D) 110; $16 trillion
The movement away from bank lending towards asset-backed securities has:
A. increased the importance of the bank-lending channel of monetary policy. B. led the FOMC to abandon interest-rate targets. C. decreased the importance of the bank-lending channel. D. eliminated the bank-lending channel as a mechanism for monetary policy.