In Figure 4-10 above, preferring the "easy fiscal, tight money" policy mix at a certain income is why we are at
A) point A rather than point C.
B) point C rather than point A.
C) point D rather than point B.
D) point B rather than point D.
D
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If a firm fails to provide investors with at least a normal rate of return,
A) it will have a positive economic profit but a negative accounting profit. B) it will not be able to remain in business in the short run. C) it will shut down in the short run but will be able to remain in business in the long run. D) it will not be able to remain in business in the long run.
In endogenous growth models, it is assumed that
a. there are external economies from public or private investments. b. there are diminishing marginal returns to capital. c. growth is explained by forces outside the model. d. the capital-labor ratio is constant.