Fixed exchange rates are determined in free markets by the forces of demand and supply

Economics is the study of

A) the role of money in markets. B) how government officials decide which goods and services are produced. C) how society uses limited resources. D) how to invest in the stock market.

Initially, the economy is at point B on Figure 10-1 above. According to the Solow model of growth, in the short run, the discovery of a cold fusion process which reduces the cost of energy by 50%, ceteris paribus, will shift the economy from ________

. A) B to H, increasing per capita output without increasing capital per capita B) B to C, increasing per capita output with increasing capital per capita C) B to C, increasing per capita output without increasing savings D) B to I, increasing output, saving and capital per capita