Consider two countries: A and B. In country A, the annual growth rate of GDP per capita is 2%, while in country B the annual growth rate of GDP per capita is 6%. At present, country B's GDP per capita is higher than country A's GDP per capita
Which of the following statements will then be true?
A) The gap between country A's GDP per capita and country B's GDP per capita will decrease for the first few years and then will increase later.
B) The gap between country A's GDP per capita and country B's per capita will decrease over time.
C) The gap between country A's GDP per capita and country B's per capita will widen over time.
D) The gap between country A's GDP per capita and country B's per capita will remain the same.
C
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The United States has a balance of payments surplus with Europe. We would therefore expect the supply of euros to be __________ the demand for euros. Consequently, the euro should __________
A) less than; appreciate B) greater than; depreciate C) less than; depreciate D) greater than; appreciate
In the long run, when price is greater than average total cost, some firms in a competitive market will choose to enter the market
a. True b. False Indicate whether the statement is true or false