EC140 Midterm 2 Practice Questions

EC140 Midterm 2 Practice Questions

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Unformatted text preview: e investment h E) igh; availability of funds, thus lowering the interest rate h 37) onsider the basic AD/AS model. In the short run, a shift of the C aggregate demand curve would lead to a change in real GDP by mostly changing A) he productivity of capital. t B) he amount of labour employed. t C) he amount of land (natural resources) available to the economy. t D) he prices of factors of production. t E) ll of the above a 32) ______ 33) ______ 34) ______ 35) ______ 36) ______ 37) ______ 10 38) he level of aggregate output is determined in the short run by ________ T but in the long run by the level of ________. A) he AS curve; potential output t B) he output gap; factor productivity t C) he AD and AS curves; factor utilization t D) he AD curve; interest rates t E) he AD and AS curves; Y* t 39) onsider the equation: GDP = L x [E/L] x [GDP/E] where L is the supply C of labour and E is the level of employment. In this equation, the term [E/L] represents the A) umber of people employed. n B) roductivity of labour. p C) apital-utilization rate. c D) he ratio of the population unemployed. t E) abour employment rate. l 40) hich of the following policies is most likely to have an effect on GDP W in the long run? A) ncrease consumption i B) ncrease labour productivity i C) educe unemployment rates r D) ncrease government purchases i E) hange factor utilization rates c 41) he four fundamental determinants of economic growth include all of T the following EXCEPT: A) rowth in human capital g B) rowth in the labour force g C) rowth in physical capital g D) echnological improvement t E) rowth in financial capital g 42) f a country transfers resources from the production of consumption I goods to the production of capital goods, the result will be to A)...
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This note was uploaded on 08/14/2013 for the course EC 140 taught by Professor Peter during the Winter '10 term at Wilfred Laurier University .

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