G c onstantdollarnationalincome c d

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: l output growth. p C) long-run equilibrium. a D) labour shortage. a E) recessionary output gap. a 32) onsider an economy in long-run equilibrium where factor supply is C 32) ______ 2.5 million units, the factor utilization rate is 0.85 and a simple measure of productivity (GDP per factor employed) is $200. Now suppose that, other things being equal, the productivity measure rises to $210. The effect of this change will be A) n increase in this economyʹs potential output, and an adjustment a back to its original level after factor prices have adjusted. B) n inflationary gap caused by simultaneous rightward shifts of the a aggregate demand and aggregate supply curves. C) n increase in this economyʹs potential output in the long run. a D) rightward shift of the aggregate supply curve, and an a adjustment back to Y*. E) rightward shift of the aggregate demand curve due to the a increased wealth of the private sector. The diagram below show the market forloanable funds assuming that national income is constant at Y*. FIGURE 26-2 33) efer to Figure 26-2. Suppose national saving is reflected by NS0 and R 33) ______ investment demand is reflected by I0D. If the real interest rate is i4, there is ________, which will drive the real interest rate up to i*. A) n excess supply of loanable funds a B) n excess demand for public saving a C) n excess demand for loanable funds a D) n excess supply of financial capital a E) n excess supply of saving a 34) robably the most commonly used measure of national income is P A) ollar value of potential output. d B) ross national product. g C) onstant dollar national income. c D) ross domestic product. g E) urrent dollar national income. c 35) he term ʺfixed investmentʺ refers to T A) he existing capital stock. t B) nvestment in plant and equipment. i C) nvestment in stocks and bonds. i D) otal investment minus depreciation. t E) one of the above. n 36) ndesired or unplanned inventory accumulation is likely to occur when U A) onsumption exceeds investment. c B) utonomous expenditure e...
View Full Document

This note was uploaded on 04/01/2013 for the course ECON 411 taught by Professor Chris during the Spring '13 term at Windsor.

Ask a homework question - tutors are online