Question

I need some confirmation on how I scored on an AP Macroeconomics Assignment. If I get something wrong, could you please tell me what the correct answer is, as well as why? Thanks!

1) Sources of economic growth would include an increase in:

consumer spending. GDP. worker education. government spending. financial investment.

(I put worker education)

2) Suppose real GDP per capita in Canada is $25,000 and its annual growth rate is 7%. Real GDP per capita for Canada will double in:

5 years. 7 years. 10 years. 20 years. an indeterminate amount of years with the information given.

(I put 10 years)

3) Congress votes to provide incentives for businesses who install “green” technology. As a result:

AD will shift right. AD will shift left. LRAS will shift right. LRAS will shift left. SRAS will shift left.

(I put AD will shift right)

4) In the long-run, a decrease in investment spending would mean:

real capital will decrease causing economic growth to decrease. real capital will decrease causing economic growth to increase. financial capital will decrease causing economic growth to decrease. financial capital will increase causing economic growth to increase. human capital will increase causing economic growth to increase.

( I put real capital will decrease causing economic growth to decrease)

5) Economic growth can be stimulated by:

a decrease in the cost of energy. a decrease in productivity. an increase in deficit spending. a decrease in the factors of production. a decrease in the money supply.

(I put a decrease in the cost of energy)

6) Suppose real GDP per capita in Belize is $14,000 and its annual growth rate is 7% thanks to a booming tourism industry. During the same time period, the real GDP per capita of Honduras is $4,000 and its annual growth rate is 5%. How much more quickly will Belize double its real GDP than Honduras?

4 years 5 years 7 years 10 years 14 years

(I put 4 years)

7) When the long-run aggregate supply curve decreases, a corresponding:

increase would take place with aggregate demand. decrease would take place with aggregate demand. increase would take place with short-run aggregate supply. decrease would take place with the production possibilities curve. increase would take place with the production possibilities curve.

(I put decrease would take place with the PPC)

8) Which of the following would cause an increase in a nation's long-run economic growth?

An increase in the number of hours in the work week. An decrease in the labor force participation rate. A decrease in worker education. A decrease in productivity. The closure of all factories in the southeast.

(I put an increase in the number of hours in the work week

9) The biggest factor for determining a change in economic growth is:

labor productivity. capital investment. an increase in population. a new oil discovery. government policies.

(I put labor productivity)

Answer 1

1) worker education will Lead to economic growth becaude their skill enhancement will contribute in increasing their share for production

2) it will take ten year for Canada to double it's GDP

3) SRAS wil shift leftward because it will become costly to produce the green goods in short run. However in long run the cost will reduce due to economies of scale.

4) yes real capita will decrease economic growth

5) economic growth can be stimulated by decrease in cost of energy.

6) yes belize will double its growth 4 years earlier than Honduras.

7) yes decrease will take place with PPC

8)yes increase in number of hours per week will cause long run growth

9) a discovery of new oil discovery will change economic growth because it will shift PPC outward which means more employment will be created and higher production will take place