-In the Above Figure, Suppose the Economy Is Initially on LD₀

question 386

Multiple Choice

-In the above figure, suppose the economy is initially on LD₀ and LS₀. According to the classical growth theory, an advance in technology would initially

• A) increase the subsistence real wage rate.
• B) increase the population.
• C) shift the LS curve from LS₀ to LS₁.
• D) increase the real wage rate.

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Rate of Return

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A measure of the volatility of a portfolio compared to the market as a whole, indicating the expected percentage change in a portfolio's value for a 1% change in the market.

Alpha

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