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When switching from the ‘current exchange rate’ method to the ‘purchasing power parity’ method, Mexico’s living standard in dollars
decreases
increases
rises to the level of the US
stays the same
leapfrogs over that of the US

‘Convergence’ have been occurring among the OECD countries because
the poorer countries have had higher growth rates than richer
the richer countries give away more of their output than the poorer
the richer countries have had higher growth rates than the poorer
the poorer countries have had positive growth rates, while the richer ones have had negative growth rates.

For this question, assume that there are decreasing returns to capital, decreasing returns to labor and constant returns to scale.  Now suppose that both capital and labor increase by 10%.  Given this information, we know that output (Y) will
increase by less than 20% but more than 10%
not change
increase by less than 10%
increase by 10%
none of the above

Which of the following will cause a reduction in output per worker in the long run?
capital accumulation
capital accumulation or technological progress
an increase in the number of workers
expansionary monetary policy
none of the above
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FROM 111.227.13.*