The growth rate of real GDP equals
A) the growth rate of hours worked plus the growth rate of labor productivity.
B) the growth rate of hours worked minus the growth rate of labor productivity.
C) the growth rate of hours worked multiplied by the growth rate of labor productivity.
D) the growth rate of hours worked divided by the growth rate of labor productivity.
Answer: A
You might also like to view...
Suppose that the Federal Reserve issued bonds in the amount of $45 million and the reserve requirement was 10%, what would be the resulting change to the monetary base?
A) $45 million B) $450 million C) $4.5 million D) The bond issuance would not impact the monetary base only the money stock.
In the above figure, assume the economy starts out in equilibrium at point d. If the Fed increases the money supply so that the new aggregate demand curve is AD3, then the long-run equilibrium will be at point
A) a. B) b. C) c. D) i.