According to the neoclassical theory of distribution， in an economy described by a Cobb-douglas production function， workers should experience high rates of real wage growth when：（ ）
A: real interest rates are low.
B: real interest rates are high.
C: average labor productivity is growing rapidly.
D: capital's share of income is growing rapidly.
A: real interest rates are low.
B: real interest rates are high.
C: average labor productivity is growing rapidly.
D: capital's share of income is growing rapidly.
举一反三
- In the late 1970s, U.S. nominal interest rates were high and real interest rates were low, but in the late 1990s, U.S. nominal interest rates were low and real interest rates were high.
- 13,The price of treasuries rises as interest rates fall, and the opposite is true when interest rates rise. Therefore, the best time to buy treasuries is when interest rates are relatively ______. (high/low)
- In the neoclassical theory of growth, growth in ________ is the result of luck. A: saving B: income C: technology D: the real interest rate
- Interest rates that include an inflation premium are referred to as A: annual percentage rates B: effective annual rates C: real rates D: nominal rates
- In an open economy with fixed exchange rates, fiscal policy is most effective at increasing real income if A: capital mobility is perfect. B: capital mobility is high. C: capital mobility is low. D: fiscal policy is ineffective with fixed exchange rates.