In the context of growth, the goal of stabilization policy once per capita output is equal to potential per capita output is to
A) insure that the percentage change in per capita output and potential per capita output over time are equal.
B) raise the growth rate of potential per capita output above that of per capita output.
C) raise the growth rate of per capita output above that of potential per capita output.
D) None of the above is correct.
A
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In two-part pricing with identical consumers, a firm
A) charges a lump-sum fee equal to the consumer surplus. B) sets unit price below marginal cost. C) should go with single-price monopoly pricing to maximize profits. D) Both A and B.
Last year there were 6 pizza shops in town. This year there are only 4. Other things being equal, the decrease in the number of suppliers will
A) cause the market supply curve to shift to the right. B) increase the market demand for pizza. C) cause a decrease in the quantity supplied at each price. D) have no impact on market supply as long as the demand for pizza remains strong.