If people suddenly anticipate that inflation will rise during the next year, which of the following is most likely?
a. Nominal interest rates will rise.
b. Nominal interest rates will decline.
c. The demand for goods and services will decline.
d. Both the real and nominal interest rates will decline.
A
Economics
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Over the past year, productivity grew 1%, capital grew 0%, and labor grew 5%. If the elasticities of output with respect to capital and labor are 0.4 and 0.6, respectively, how much did output grow?
A) 1% B) 2% C) 3% D) 4%
Economics
A short-run marginal cost function is estimated as SMC = 96 - 4Q + 0.15Q2. Which of the following cost functions is associated with this estimated SMC equation?
A. a and d B. TVC = 96Q - 2Q2 + 0.05Q3 C. TVC = 96Q + 4Q2 + 0.15Q3 D. AVC = 96 - 2Q + 0.05Q2 E. SMC = 96 -- 4Q + 0.1Q2
Economics