7. Stagflation is a situation of (a) stable prices and falling output. (b) stable prices and...

 

Transcribed Image Text:

7. Stagflation is a situation of (a) stable prices and falling output. (b) stable prices and rising output (e) falling prices and falling output (d) rising prices and rising output (e) rising prices and falling output 8. A movement down an aggregate demand curve results from: (a) an increase in the level of inflation (b) a decrease in the level of inflation (c) an increase in the money supply (d) a decrease in the money supply (e) a negative supply shock 9. Consider an economy, with a production function given by Y = AK03107. This economy's annual GDP growth rate is 5%. Also assume that L and K are both growing at annual rates. of 2%. The growth rate of total factor productivity for this economy is: (a) 2.0% (b) 3.0% (e) 4.0% (d) 5.0% (e) 5.0% 0. In the Solow-Swan model, if saving is less than replacement investment then, other things being equal, (a) the capital-labour ratio will fall and the marginal product of capital will fall (b) the capital-labour ratio will rise and the marginal product of capital will fall (c) the capital labour ratio will fall and the marginal product of capital will remain un- changed (d) the capital-labour ratio will fall and the marginal product of capital will rise (e) the capital-labour ratio will rise and the marginal product of capital will rise 1. The convergence hypothesis of the Solow-Swan model implies that: (a) countries with relatively high per capita capital stocks tend to grow more quickly than countries with lower per capita capital stocks (b) countries with relatively low per capita capital stocks tend to grow more quickly than countries with higher per capita capital stocks (c) countries with relatively low per capita capital stocks tend to reach their steady state more quickly than countries with higher per capita capital stocks (d) countries with relatively high per capita capital stocks tend to reach their steady state more quickly than countries with higher per capita capital stocks. (e) all countries will grow at the same rate regardless of the level of per capita capital stock 7. Stagflation is a situation of (a) stable prices and falling output. (b) stable prices and rising output (e) falling prices and falling output (d) rising prices and rising output (e) rising prices and falling output 8. A movement down an aggregate demand curve results from: (a) an increase in the level of inflation (b) a decrease in the level of inflation (c) an increase in the money supply (d) a decrease in the money supply (e) a negative supply shock 9. Consider an economy, with a production function given by Y = AK03107. This economy's annual GDP growth rate is 5%. Also assume that L and K are both growing at annual rates. of 2%. The growth rate of total factor productivity for this economy is: (a) 2.0% (b) 3.0% (e) 4.0% (d) 5.0% (e) 5.0% 0. In the Solow-Swan model, if saving is less than replacement investment then, other things being equal, (a) the capital-labour ratio will fall and the marginal product of capital will fall (b) the capital-labour ratio will rise and the marginal product of capital will fall (c) the capital labour ratio will fall and the marginal product of capital will remain un- changed (d) the capital-labour ratio will fall and the marginal product of capital will rise (e) the capital-labour ratio will rise and the marginal product of capital will rise 1. The convergence hypothesis of the Solow-Swan model implies that: (a) countries with relatively high per capita capital stocks tend to grow more quickly than countries with lower per capita capital stocks (b) countries with relatively low per capita capital stocks tend to grow more quickly than countries with higher per capita capital stocks (c) countries with relatively low per capita capital stocks tend to reach their steady state more quickly than countries with higher per capita capital stocks (d) countries with relatively high per capita capital stocks tend to reach their steady state more quickly than countries with higher per capita capital stocks. (e) all countries will grow at the same rate regardless of the level of per capita capital stock