The government could close an inflationary gap by increasing government spending by some amount greater than taxes
Indicate whether the statement is true or false
F
Economics
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If the slope of the per-worker production function is 1/2 in a given range, how will a $10,000 increase in capital per hour worked affect real GDP per hour worked in the same given range?
A) Real GDP per hour worked will increase by $10,000. B) Real GDP per hour worked will increase by $5,000. C) Real GDP per hour worked will increase by $20,000. D) Real GDP per hour worked will decrease by $20,000.
Economics
Holding everything else constant, if total factor productivity ________ or if the labor force growth rate ________ the debt-to-GDP ratio will increase
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Economics