Author Question: In a small European country, it is estimated that changing the level of capital from 8 million to 10 ... (Read 79 times)

mia · **on:** Jun 29, 2018

In a small European country, it is estimated that changing the level of capital from 8 million to 10 million will increase real GDP from 2 million to 3 million.

If the number of hours worked in the labor force does not change, what does this information tell you about the slope of the per-worker production function in this range?
A) The slope is -2. B) The slope is 1/2. C) The slope is 2. D) The slope is 4.

Question 2

When aggregate expenditure = GDP

A) net exports equal zero. B) macroeconomic equilibrium occurs.
C) saving equals zero. D) the federal budget is balanced.