1.

a) Assume the production function is represented by the following:Y=F(K, AN). Now suppose the variable,A, increases by 5%. This implies that which of the following variables will also increase by 5%?

Select one:

a. capital

b. output

c. effective labour

d. All of the above.

e. None of the above.

b) Between 1950 and 2004, standards of living in the OECD countries:

Select one:

a. decreased at the same rate.

b. all increased at the same rate.

c. did not change at all.

d. were converging.

e. decreased but at different rates.

c) In Australia, output per capita in 2004 was almost three times that in:

Select one:

a. 1950.

b. 1850.

c. 1985.

d. 1975.

e. 1900.

d)

When the central bank has an interest rule, which of the following represents the AD relation? Select one: O b. V - Up 1= - 6( 9y - 3%) O C. W- Up 1= - 9p O d. gp=?, - 0( n - n]] Oo. M- my= -a( up - Up)