QUIZ-III-ECO-3203-F2003-sola

B more variable and future total factor productivity

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Unformatted text preview: al interest rate is a) more variable and future total factor productivity is more variable. b) more variable and future total factor productivity is less variable. c) less variable and future total factor productivity is more variable. d) less variable and future total factor productivity is less variable. Answer: (a) 46) When drawn against the real interest rate, the output supply curve is upward sloping because labor supply is a) increasing in the real interest rate and labor demand is independent of the real interest rate. b) decreasing in the real interest rate and labor demand is independent of the real interest rate. c) independent of the real interest rate and labor demand is increasing in the real interest rate. d) independent of the real interest rate and labor demand is decreasing in the real interest rate. Answer: (a) 47) When drawn against the real interest rate, the output supply curve unambiguously shifts to the right if either or 8 both of the following occur: a) an increase in current government spending and an increase in future government spending. b) an increase in current government spending and a decrease in future government spending. c) a decrease in current government spending and an increase in future government spending. d) a decrease in current government spending and a decrease in future government spending. Answer: (a) 48) When drawn against current income, the slope of the C ( r ) + I ( r ) + G curve is equal to the marginal a) product of capital. b) product of labor. c) propensity to consume. d) propensity to save. Answer: (c) d d 49) When drawn against the real interest rate, the output demand curve unambiguously shifts to the right if either or both of the following occur: a) an increase in current taxes and an increase in future taxes. b) an increase in current taxes and a decrease in future taxes. c) a decrease in current taxes and an increase in future taxes. d) a decrease in current taxes and a decrease in future taxes. Answer: (d) 50) When drawn against the real interest rate, the output demand curve shifts to the right when a) current t...
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