Essay Question 1 Essay question 1(a) The aggregate production function is Y = 2KL. There are 36 units of capital and 25 units of labor. What is the aggregate output?  

A prolonged and deep recession is a ______________________.

Justin borrows $1000 from Dexter.  Dexter wants to make a 5% real return (real interest rate) on his money, so they both agree on a 5% nominal interest rate paid next year. Both do not anticipate the 3% inflation next year. In this case,

Which of the following is considered investment?

If the number of unemployed is 20,000 and the number of employed is 620,000, what is the unemployment rate?

Refer to Figure 1. Which of the following will cause a movement from Point D to Point A? 

If the CPI in period 1 is 125 and the CPI in period 2 is 150, then the rate of inflation between period 1 and period 2 is  

Which of the following is NOT the source of increased productivity?

Refer to Table 6. If the exchange rate is $1 = 3 euros, then

Refer to Table 5. Germany has