« previous next »

Author Question: In a small Asian country, it is estimated that changing the level of capital from 8 million to 12 ... (Read 61 times)

cnetterville

  • Hero Member
  • *****
  • Posts: 547
on: Jun 29, 2018
In a small Asian country, it is estimated that changing the level of capital from 8 million to 12 million will increase real GDP from 4 million to 6 million.
 
  What level of GDP would you expect the economy to be able to reach if spending on capital continued to rise to 16 million, assuming no technological change and no change in the hours of work?
  A) GDP would increase further by exactly 8 million.
  B) GDP would increase further by exactly 2 million.
  C) GDP would increase further, but by less than 2 million.
  D) GDP would increase further by more than 2 million

Question 2

What is the natural rate of unemployment, and what types of unemployment constitute the natural rate of unemployment?
 
  What will be an ideal response?
Macroeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 7th Edition
Buy Test-Bank


lauravaras

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

The natural rate of unemployment is the rate of unemployment that exists in the economy when cyclical unemployment is zero. This underlying level of unemployment in the economy consists of frictional and structural unemployment. The natural rate of unemployment is also known as the full-employment rate of unemployment.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

cnetterville

  • Hero Member
  • *****
  • Posts: 547
Reply #2 on: Jun 29, 2018
Thank you :)


lauravaras

  • Sr. Member
  • ****
  • Posts: 347
Reply #3 on: Jun 29, 2018
Happy to help you


« previous next »
 

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

The basalt below the hominins is dated to 1.8 million years ago, and the geomagnetic polarity of the The basalt below the hominins is dated to 1.8 million years ago, and the geomagnetic polarity of the
Changing a Sterile Dressing Changing a Sterile Dressing
Energy Use by Different Country Groups Energy Use by Different Country Groups
Muscle action in the small intestine Muscle action in the small intestine
Summary of digestion and absorption in the small intestine Summary of digestion and absorption in the small intestine
Hearing level comparison amongst workers Hearing level comparison amongst workers
Video: Fetal Development of the Cardiovascular System

For a complete list of videos, visit our video library