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An increase in the stock of capital of an economy

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1. "An increase in the price of a good that is imported into the US – holding all other prices and quantities Öxed - will tend to increase the GDP deáator in the US"

2. "In an economy with only two goods, the choice of the base year (b) will not affect the growth rate of real GDP with base year b, as long as the relative price between the goods (that is, the ratio of the price of one good to the price of the other) is constant over time"

3. "An increase in the stock of capital of an economy tends to increase the real wage"

4. "The shorter the duration of a given increase in the real wage, the stronger the income effect is"

5. "Skill-biased technical change, through its effect on labor supply of skilled and unskilled workers, can generate an increase in wage inequality"

Reference no: EM13314679

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