1%
2%
5%
10%
5%
4%
2.6%
-2.2%
The quantity of capital one worker can produce in one day
The quantity of output produced in one hour by one machine.
The quantity of output produced in one hour by several workers
The quantity of output produced by one worker or by one hour of work.
Sustained increaes in the labor force participation rate
Accumulation s of economic resources
Technological change
Increases in capital per hour worked
Always grows at a slower rate than potential GDP
Is the same as potential GDP if all firms in the economy were working at capacity.
Always grows at a faster rate than potential GDP
Always grows at the same rate as potential GDP
I=Y-C-G
I=Y+C+G
I=Y-C+G
I=Y+C-G
$5 billion
$ 15 billion
$ 45 billion
$55 billion
An increase in government purchases
An increase in taxes
An increase in transfers
All of the above would increase public savings
The demand for loanable funds decreases
The supply of loanable funds decreases
The supply of loanable funds increases
The demand for loanable funds increases
Employment rises, but income and production will continue to fall
Income and production will rise, but employment will continue to fall.
Income, production, and employment will continue to fall
Income, production, and employment will begin to rise.
Two consecutive quarters of declining nominal GDP
A significant decline in activity visible in industrial production, employment, real income, and wholesale/retail trade lasting more than a few months.
Two consecutive quarters of declining real GDP.
A significant decline in inflation and unemployment lasting more than a few months.
Inflation in the economy between this year and last year was 102%
There was deflation in the economy between this year and last year.
The CPI measures only the level of prices in a given year, not the percentage change in prices from one year to the next.
Inflation in the economy between this year and last year was 2%
4%
7%
10%
40%
Explains changes in nominal GDP per capita in the short run
Explains changes in real GDP per capita in the short run
Explains changes in real GDP per capita in the long run
Explains changes in nominal GDP per capita in the long run
States that the rate of technological change is determined outside the working of the market system
States that the rate of technological change is unaffected by economic incentives
States that the rate of technological change is caused by economic incentives.
Does not adequately explain the factors that determine productivity
Encouraging the use of trade secrets,expanding student loan programs, and increasing the minimum wage.
Reducing taxes on capital, increasing social security payments, and lowering the exchange rate
Increasing taxes on firms, eliminating patents, and increasing the minimum wage
Protecting intellectual property rights, subsidizing research and development, and subsidizing education
Countries with a weak rule of law have faster economic growth
Countries that enforce property rights through lawsuits have slower economic growth
Countries where favoritism and bribery are common have stronger rates of growth
Countries with a strong rule of law have faster economic growth
Cuases a deterioration in human capital and a decline in labor productivity
Cuases a deterioation in human capital and an increase in physical capital
Increases human capital and cause a decline in labor productivity
Causes a decline in physical capital and a decline in labor productivity
You purchase a plane ticket to China on American airlines
American airlines builds a hub in china
A stock broker from china sells you a chinese government savings bond
You buy a plan that was made in china
Increasing the supply of loanable funds, lowering the interest rate, raising the level of investment in physical capital
Increasing the supply of loanable funds, increasing the interest rate, raising the level of investment in physical capital
Increasing the supply of loanable funds, lowering the interest rate, lowering the level of investment in physical capital
Decreasing the supply of loanable funds, lowering the interest rate, raising the level of investment in physical capital
Because of the low birth rate in china, the labor force will soon decline.
Much of china's growth is likely due to the transition from a centrally-planned economy to a market economy to a market economy.
The united states invests more in research and development. than china does
The chinese migration of rural workers to more productive urban jobs.
C+I+depreciation-NX
C+I+G+NX
C+I+G
C+I+G-NX
There was unplanned decrease in inventories equal to $2 million
There was an unplanned increase in inventories equal to $2 million
There was was an unplanned decrease in inventories equal to $19 million
There was no unplanned change in inventories
Firm investment in inventories was less than anticipated in 2011
Firm investment in inventories was greater than anticipated in 2011
Aggregae expenditure is always less than GDP in developed countries
Aggregate expenditure is always less than GDP in developing countries
A decrease in consumption spending
No change in consumption spending
An increase in wealth
An increase in consumption spending
Consumption divided by disposable income
The change in disposable income divided by the change in consumption
The change in consumption divided by the change in disposable income
Disposable income divided by consumption
The multiplier effect occurs when autonomous expenditure changes
The multiplier rises as the MPC rises
The multiplier is a value between zero and one
The smaller the MPS, the larger the mulitiplier
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