Author Question: The rules of the game, if followed closely by central banks, would have (a) made trade ... (Read 22 times)

sjones · **on:** Jun 30, 2018

The rules of the game, if followed closely by central banks, would have

(a) made trade fluctuations worse than they were.
(b) wiped out trade fluctuations.
(c) neutralized central bank policy.
(d) forced the federal government to borrow directly from central banks.

Question 2

If productivity is growing at some sustained rate g, then output and capital per worker ________.

A) are growing at the same rate g, in a stable steady state
B) are growing faster than g, because improving technology encourages a higher rate of saving and investment
C) are growing slower than g, because some of the new capital is merely replacing obsolete capital
D) are growing faster than g, because productivity does not suffer from diminishing marginal product