An increase in labor hours will lead to
A) a shift of the aggregate production function but no movement along it.
B) a movement along the aggregate production function but no shift in it.
C) both a movement along and a shift in the aggregate production function.
D) neither a movement along nor a shift in the aggregate production function.
B
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Inflation targeting is one policy that attempts to deal with the problem of:
a. dollarization. b. time inconsistency. c. the tradeoff between inflation and unemployment. d. the liquidity trap. e. none of the above.
If the average annual growth rate in real GDP for a nation during the last decade was 4 percent per year and the average annual population growth rate was 3 percent per year during the same period, then the average annual growth rate of per capita GDP was
A) 1.00 percent. B) -1.00 percent. C) 0.75 percent. D) 1.33 percent.