Refer to Figure 11-2. Based on the per-worker production function above, if the economy raises capital per hour worked from 35,000 to 40,000, by how much will real GDP per hour worked increase?
A) 150 B) 1,850 C) 2,000 D) 5,000
Question 2
Cyclical unemployment is the result of
A) the search process of matching workers with jobs.
B) a slowdown in the economy.
C) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.
D) the ups and downs in inflation.
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In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
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Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...