Refer to Table 19-19. Given the information above, calculate the GDP deflator in 2015

When a temporary adverse supply shock hits a large open economy, it causes the current account to ________ and investment to ________

A) fall; fall B) rise; remain unchanged C) fall; remain unchanged D) rise; fall

Does this production function, q = 10L0.5K0.3, experience increasing, decreasing or constant returns to scale?

A) Decreasing because a 100% increase in inputs increases outputs by 80%. B) Increasing because an 80% increase in inputs increases outputs by 100%. C) Decreasing because 0.5 + 0.3 < 1. D) A and C.