Refer to Figure 27-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, and no fiscal or monetary policy is pursued, then at point B
A) the economy is below full employment.
B) firms are operating at below capacity.
C) there is pressure on wages and prices to fall.
D) income and profits are falling.
E) the unemployment rate is very low.
E
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The classic resource study of Barnett and Morse found that
a. resource costs have been rising at such a rate that, within fifty years, the prices of most natural resources will be exorbitant. b. the current proved reserves of most minerals are becoming perilously low. c. resource prices declined between 1870 and 1920, but since 1920 the relative price of natural resources has been increasing at an annual rate of approximately 3.5 percent. d. technology and developing substitutes outran our use of scarce natural resources during the last century, so that relative resource prices have declined.
Suppose that average labor productivity in Country C is $5,000, and that Countries C and E have the same real GDP per capita. Based on the information in the table, what must be the average labor productivity in Country E?CountryPopulation (millions)Share of Population Employed (%)A10060B15055C7550D25045E9540
A. $1,500 B. $6,250 C. $4,500 D. $1,000