Suppose than an economy has output Y = A , that Y equals 42 trillion, capital K is 64 trillion, and labor L is 125 million workers. Given this information, what is the closest approximation of total factor productivity A?
A) less than 0.01
B) around 0.25
C) roughly 0.33
D) close to 0.4
E) exactly 144
Question 2
The supply curve of loanable funds slopes up because
A) at higher bond prices more loanable funds will be supplied.
B) higher interest rates reduce the inflation rate.
C) an increase in the interest rate makes lenders more willing and able to supply more funds.
D) a decrease in the interest rate makes lenders more willing and able to supply more funds.
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