Suppose that Y = 4,000 and we are at a point on the money demand schedule where (M/P) = 600. Should Y fall to 3,900, the same quantity of real money balances
A) will not be demanded under any conditions.
B) will be demanded again provided the interest rate does not change.
C) will be demanded again provided the interest rate rises by a certain amount.
D) will be demanded again provided the interest rate falls by a certain amount.
D
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The Solow model implies that continuous growth in productivity at a rate of one percent will result in continuous growth of output per worker at a rate of 1.43%
Thus, if at a point in time output per worker is 270 and productivity rises by one percent, the resulting level of output per worker is ________. A) 386 B) 273 C) 274 D) 277
which shows the production possibilities frontier for Good A and Good B. When moving from point g to point f, the production of _____
a. Good B increases without a change in the production of Good A. b. Good A increases without a change in the production of Good B. c. both Good A and Good B increases. d. Good B decreases but Good A does not increase as much as if resources were used more efficiently. e. Good B increases and the production of Good A decreases.