Ans is D
Real GDP or potential output depends on the factor of production. I.e. it depends on labor, capital and technology involved.
Thus reduction in labor, capital or worsening of technology all leads to decrease in aggregate output
Question 8 0.2 pts Which of the following will cause a reduction in aggregate output? O...
Question 5 0.2 pts All else equal, which of the following would cause an increase in output per effective worker? an increase in population an increase in technology a doubling of both capital and labor a doubling of capital and technology an increase in capital per effective worker
Question 2 0.2 pts An increase in government spending will cause which of the following when a liquidity trap situation exists? Output will increase. The interest rate will increase. Output will decrease. The interest rate will decrease. Output will not change.
QUESTION 23 Ceteris paribus , which of the following would cause the aggregate demand curve to shift to the right? a reduced stock market wealth b. a reduction in transfer payments c. a rise in consumer confidence d. higher personal taxes QUESTION 24 Ceteris paribus , which of the following would cause the aggregate demand curve to shift to the right? a reduced stock market wealth b. a reduction in transfer payments c. a rise in consumer confidence d. higher...
QUESTION 36 Which of the following would cause the long-run aggregate supply curve to shift to the right? (Choose all that apply). an improvement in technology an increase in the supply of capital goods an increase in the size of the labor force a decrease in nominal wages
Question 13 (1 point) Saved Which of the following would cause a reduction in exports? O 1) an increase in foreign output 2) a real depreciation of the domestic exchange rate O 3) a decrease in domestic output 4) a real appreciation of the domestic exchange rate 5) an increase in domestic output
Question 21 1 pts Use the following table which shows the aggregate demand and aggregate supply schedule for a hypothetical economy to answer the next question. Real Domestic Output Demanded Price Level Real Domestic Output Supplied (in billions) (index value) (in billions) $3,000 350 $9,000 4,000 300 8,000 5,000 250 7,000 6,000 200 6,000 7,000 150 5,000 8,000 100 4,000 At the price level of 150, there will be a general surplus in the economy, and output supplied will decrease...
Question 8 1 pts Which of the following might cause a depositor to receive a credit memorandum from the bank? A service charge O A deposit in transit O An NSF chied Anate collected by the bank for the depositor Question 9 1 pts Deposits in transit will: o appear as additions to the company's bank account balance in the next bank statement not require an adjustment on the company's books be recorded within days on the bank's records. All...
Question 12 0.2 pts Suppose there is a permanent increase in a country's saving rate. This increase in the saving rate will cause: O a permanently higher level of capital per worker. a permanently higher level of output per capita. a permanently faster growth rate of output. both of the first two answers above O none of the above.
If the short-run aggregate supply decreases by more than the long-run aggregate supply, then, at the short-run equilibrium, a) Output will be equal to its natural level. b) Output will be above its natural level. O c) Unemployment will be equal to the natural rate of unemployment. d) Output will be below its natural level. Facebl» wides anಂಕು Suppose the economy is at point C. If investment spending decreases in the economy, where will the eventual long-run equilibrium be? a)...
Which of the following would cause the long-run aggregate supply curve to shift to the right? (Choose all that apply) an increase in the size of the labor force a decrease in nominal wages an improvement in technology an increase in the supply of capital goods