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### 09-03-2009 105412 PM

Course: ECON 104, Summer 2009
School: Camosun College
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Word Count: 203

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When 6) wage rates rise faster than the increase in labour productivity the 6) y A) Y* curve shifts right. B) AS curve shifts downward. C) AS curve shifts upward. D) the AD curve'shifts left. E) Y* schedule shifts left. ^~\ 7) The output gap is defined as the 7) A) level of total output that would be produced if capacity utilization is at the normal rate. B) result of economic growth. C) difference between...

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When 6) wage rates rise faster than the increase in labour productivity the 6) y A) Y* curve shifts right. B) AS curve shifts downward. C) AS curve shifts upward. D) the AD curve'shifts left. E) Y* schedule shifts left. ^~\ 7) The output gap is defined as the 7) A) level of total output that would be produced if capacity utilization is at the normal rate. B) result of economic growth. C) difference between nominal GDP and real GDP. D) difference between actual GDP and potential GDP. E) constant factor in the long-run. 8) A leftward shift of longrun aggregate supply curve (potential GDP) could be caused by 8) A) an increase current in national savings. B) a decrease in interest rates. C) an improvement in the productivity of labour. D) a fall in the price level. E) a decrease in the available resources. 9) Fiscal policy refers to the A) government's use of policy tools to influence the net export function, thereby influencing GDP. B) household's attempts to change savings to encourage growth. C) government's use of spending and taxing policies to influence aggregate demand and aggregate supply. D) business sector's influence on investment and GDP. E) government's attempts to maintain a vertical long run aggregate supply curve. 9) r
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Camosun College - ECON - 104
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Camosun College - ECON - 104
B*IADReal Hationai Ittcome (GDP)FIGURE 24-112) Referring to Figure 24-1, where the economy is currently in equilibrium at YQ, the appropriatefiscal policy response, to attain full employment output (Y*), isA) an increase in personal income taxes.B
Camosun College - ECON - 104
.*&gt; B.Real National Jncome^GDI?)FIGURE 24-213) Referring to Figure 24-2, if the economy is in equilibrium at YI, the automatic adjustment process13)will restore potential output, Y* throughA) wage decreases and a rightward shift of the AD curve.B)
Camosun College - ECON - 104
21) If a richer country GDP per capita grows at a-faster annual rate than a poorer one21)A) the gap between their standards of living will widen over time.B) the gap between their standards of living will close over time.C) the gap between their stand
Camosun College - ECON - 104
Analytical QuestionI. The following diagram shows the AD, AS, and Y* curves for an economy. Suppose theeconomy begins at point A. Then government reduces its level of purchases (G).P|ASADGDPa. Describe the short-run effects of this fiscal expansion
Camosun College - ECON - 104
n. In a simplified situation, we can express the GDP accounting equation in terms of asingle factor of production - labour. Letting L be the labour force and E be the level ofemployment.a. Derive the following GDP accounting equation GDP = L * (E/L) *
Camosun College - ECON - 104
III. Consider an economy in the long run with real GDP equal to the level of potentialoutput, Y .a. Draw the diagram of the market for loanable funds, and derive the national savingequation..as-A K'-Cf-C - 7&gt;K7-Ob. Suppose the government pursued a f
Camosun College - ECON - 104
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University of Florida - COP - 4600
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University of Florida - COP - 4600
University of Florida - COP - 4600
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University of Florida - COP - 4600
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University of Florida - COP - 4600
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University of Florida - COP - 4600
University of Florida - COP - 4600