The estimate of potential GDP would decrease if
a. the rate of capital depreciation increased.
b. the labor force decreased.
c. the price level grew.
d. All of the above would increase potential GDP.
b
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Which of the following statements is false?
A) Marginal cost will equal average total cost when marginal cost is at its lowest point. B) When marginal cost is greater than average total cost, average total cost will rise. C) Marginal cost will equal average total cost when average total cost is at its lowest point. D) When marginal cost is less than average total cost, average total cost will fall.
The Federal Reserve econometric model estimates that the liquidity effect an increase in the money supply will
A) lower interest rates for 6 months to a year. B) lower interest rates permanently. C) have no effect on interest rates. D) raise interest rates after 6 months to a year.
Which of the following countries had an unemployment rate in excess of 20% as of late 2012?
A) Ireland B) Spain C) Portugal D) Italy
Credit cards are not a form of money because
A) money needs to be tangible (not virtual). B) credit cards just extend a loan. C) credit cards just relate to an account. D) credit card balances are in fact counted as money.