The application of Solow's growth theory to the explanation of the slowdown in productivity growth in the United States suggests that the slowdown is primarily caused by
A) reduced growth in the capital stock per hour of work.
B) reduced growth in the technical change or total factor productivity.
C) slow residual growth of the capital stock.
D) ignorance since people save and invest less.
B
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Which of the following shifts the short-run but not the long-run aggregate-supply curve left?
a. an increase in the expected price level b. a decrease in the expected price level c. a decrease in how much people want to consume d. an appreciation of the dollar
A firm observes that in order to minimize the average cost, it must produce 25,000 units of output. Suppose the government imposes a specific tax on the output of the firm
Will the output level required to minimize the average cost increase, decrease, stay the same or is it uncertain? Can you tell how much the minimum average cost will change by? Explain.