If an economy is operating at short-run equilibrium below the level of real GDP, the self-correction model result is that:
a. unemployment increases

Initially, the economy is at point B on Figure 10-1 above. According to the Solow growth model, an increase in the output per capita without an increase in capital per worker is represented by ________ and could be the result of ________

A) the movement B to E; new technology discoveries B) the movement B to H; improved health and education per worker C) the movement B to C; an increase in the savings rate D) the movement B to F; a decrease in the savings rate

An increase in income (all else equal) will ALWAYS lead to a parallel shift of the budget line

Indicate whether the statement is true or false