15 - Economic growth theory is primarily concerned with: (...

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Economic growth theory is primarily concerned with: ( ) A) the long-run view of the economy. ( ) B) short-run economic stabilization. (X) C) factors that cause short-run fluctuations in the money supply. ( ) D) factors that influence changes in the growth rate of the national debt. Feedback: Economic growth deals with the long run. The primary mechanism for achieving economic growth: ( ) A) is represented by increased capacity utilization, which is represented by a movement from a point inside the production possibilities curve to a point on the curve. (X) B) is represented by a movement from an undesirable point on a given production possibilities curve to a more desirable point on a given production possibilities curve. ( ) C) is by emphasizing macroeconomic stabilization. ( ) D) is represented by changes in a nation's productive capacity, represented by an outward shift of the production possibilities curve. Feedback: An outward shift of the production possibilities curve represents economic growth. Policy makers emphasizing economic growth primarily seek: ( ) A) to implement actions that shift the aggregate supply curve rightward. ( ) B) to apply policies that increase or decrease the money supply so
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as to maintain full employment. (X) C) to promote policies that emphasize tax increases to prevent the economy from overheating. ( ) D) to implement polices that ensure that the rate of monetary growth never falls below 8%. Feedback: Policy makers attempt to do things that shift the aggregate supply curve to the right. GDP per capita: (X) A) is the amount of GDP produced per unit of capital equipment since capita is the Latin root word for capital. ( ) B) is GDP divided by the total population. ( ) C) is the amount of GDP produced by an individual state. ( ) D) None of the above is true. Feedback: "Per capita" means per person, so GDP per capita means GDP divided by the
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15 - Economic growth theory is primarily concerned with: (...

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