In the New Keynesian open economy model, suppose the exchange rate is flexible and there is a decline in total factor productivity
A) expansionary fiscal policy is necessary.
B) contractionary monetary policy is necessary.
C) expansionary monetary policy is necessary.
D) no policy intervention is necessary.
B
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Which of the followings statements is true?
A) The amount of capital accumulation will be higher if the capital stock of last year was low. B) The amount of depreciation will be lower if the investment on capital last year was high. C) The amount of capital accumulation will be higher if the capital stock of last year was high. D) The amount of depreciation will be higher if the investment amount on capital last year was low.
________ earned the highest amount of income among the factors of production in the United States
A) Labor B) Capital C) Land D) Entrepreneurship E) Investment