Which of the following is not a determinant of the long-run level of real GDP?
A. the price level.
B. the amount of capital used by firms.
C. available stock of human capital.
D. available technology
The naswer is option a- the price level
The price level is not a determinant of the long-run level of real GDP
Which of the following is not a determinant of the long-run level of real GDP? A....
What is potential GDP? O A) It is the level of real GDP in the long run. OB) It is the difference between current GDP and maximum GDP. O C ) It is the level of real GDP in the short run. O D) It is the level of GDP at which inflation is constant.
Indicate the change (if any) to a nation's long-run equilibrium real GDP and price level from the following combination of factors. Productivity declines and there is more money in circulation This would cause the nation's long-run equilibrium real GDP to and the price level to increase change in an indeterminate way decrease
For each of the cases below, indicate whether the price level and level of real GDP will go "up","down", or stay the same." Assume that prices are flexible in both directions unless the information given indicates otherwise. The term in parentheses indicates whether the economy is operating in the immediate short run, short run, or long run. Answers may be used more than once. Expansionary fiscal policy. (long run) A. Price level down; real GDP same Development of alternative energy...
Suppose the current level of real GDP for an economy is below its potential level of RGDP. Starting with this situation, and in the absence of any government action, what should next happen in the AD-AS model? Group of answer choices A. A decrease in the Long-Run Aggregate Supply B. An increase in Aggregate Demand C. A decrease in Aggregate Demand D. An increase in the Short-Run Aggregate Supply E. An increase in the Long-Run Aggregate Supply F. A decrease...
What happens to real GDP and the price level, if a country enters a war and experiences destruction of its human and physical capital stocks? Assume that initially the economy is at its long-run equilibrium.
1. Which of the following do not influence real economic growth in the long-run? a. Increase supply of currency b. Increase in the availability of technology c. Well established private property rights d. increase in the amount of capital
Real GDP demanded Real GDP supplied Short run Long run (dollars) (dollars) Price level (dollars) 700 90 300 600 100 600 400 600 110 500 500 600 120 400 600 600 The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. In short -run equilibrium, there is __---- 1) an inflationary gap of $100 2) a recessionary gap of $100 3) a recessionary gap of $200 4) an inflationary gap of $200
In the long run, the output level which is obtained when capital (K) and labor (L) are employed at the maximum level for a given level of technology is called the: a) real output b) nominal output c) actual output d) potential output
QUESTION 23 Which of the following shifts aggregate demand to the left? a. The price level falls. b. The dollar depreciates for some reason other than a change in the price level. c. Stock prices fall for some reason other than a change in the price level. d. The price level rises. QUESTION 24 Aggregate demand shifts left when the government a. decreases taxes. b. cuts military expenditures. c. creates a new investment tax credit d. None of the above...
Suppose government spending decreases. Beginning in a long-run equilibrium, what would be the long-run effect on the goods and services market? Group of answer choices A. GDP Deflator increases, Real GDP decreases B. GDP Deflator decreases, Real GDP decreases C. GDP Deflator decreases, no change in Real GDP D. GDP Deflator increases, no change in Real GDP An increase in the amount of technology will shift which curve(s)? Group of answer choices A. Aggregate demand and short-run aggregate supply B....