Refer to Figure 11-2. Assuming no technological change, if the United States increases capital per hour worked by $40,000 every year between 2012 and 2016, we would expect to see
A) the per-worker production function will shift up every year there is increase in capital per hour worked.
B) the per-worker production function will get flatter over time.
C) real GDP per hour worked will increase by the same increment each year between 2012 and 2016.
D) real GDP per hour worked will be lower in 2016 than it was in 2012.
B
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When the value of one currency falls relative to another currency, the exchange rate for the first currency has
A) depreciated. B) appreciated. C) demanded. D) revalued.
If a large percentage increase in the price of a good results in a small percentage reduction in the quantity demanded of the good, demand is said to be
a. of unitary elasticity. b. relatively inelastic. c. relatively elastic. d. perfectly elastic.