Unformatted text preview: Assessment 3 (Due: 5:10pm, 3 Oct, 2008 (Fri)) Submit via WebCT!!! 1) only way the standard of living of the average person in a country can increase is by The increasing ________ faster than ________. A) roduction; population p B) ncome; population i C) opulation; production p D) opulation; income p 2) f an economy is growing at a rate of 2.5% per year, how long will it take the economy to I double in size? A) 0 years 6 B) 3 years 4 C) 6 years 3 D) 8 years 2 3) abor productivity will increase if the ________ increases and ________. L A) uantity of capital per hour worked; technological change occurs. q B) uantity of labor per unit of capital; technological change occurs. q C) uantity of capital per hour worked; immigration increases while capital is fixed. q D) uantity of labor per unit of capital; immigration increases while capital is fixed. q 4) rivate savings is defined as P A) + Tr - C - T Y B) + G + Tr T C) - G + Tr T D) + Tr + C - T Y 5) he federal budget deficit can be reduced by T A) aising taxes. r B) aising government spending. r C) aising transfer payments. r D) ower interest rates. l 6) f technological change increases the profitability of new investment for firms, then the I _____________ curve for loanable funds will shift to the ________ and the equilibrium real interest rate will ________. A) upply; right; fall s B) upply; left; rise s C) emand; right; rise d D) emand; left; fall d 1 Assessment 3 (Due: 5:10pm, 3 Oct, 2008 (Fri)) Submit via WebCT!!! 7) government budget surplus will shift the ________ curve for loanable funds to the A ________ and the equilibrium real interest rate will ________. A) upply; right; fall s B) upply; left; rise s C) emand; right; rise d D) emand; left; fall d 8) s the economy nears the end of an expansion, interest rates usually ________ and wages A rise more ________ than prices. A) ise; rapidly r B) ise; slowly r C) all; rapidly f D) all; slowly f 9) hen a recession ends, W A) nterest rates decrease. i B) ouseholds decrease spending on durable goods. h C) the household sector decreases spending substantially. D) irms increase the amount of borrowing. f 10) recession begins with a ________ in spending by firms on capital goods and a A ______________ in spending on durable goods by households. A) increase; decrease B) increase; increase C) decrease; increase D) decrease; decrease 2 ...
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- Spring '10
- Economics, technological change occurs.