According to long-run growth models, which of the following is least likely to increase potential output?

A. Higher levels of saving and capital accumulation
B. More rapid development of growth-compatible institutions
C. Increased levels of entrepreneurship
D. Increased aggregate demand


Answer: D

Economics

You might also like to view...

In practice, the Federal Reserve keeps the discount rate close to the ________ rate in order to avoid large swings in borrowed reserves by banks

A) inflation B) prime C) six-month Treasury bill D) federal funds

Economics

In a market economy, a resource is compensated according to

a. the needs of its owner. b. its contribution to the final product. c. social priority. d. government direction.

Economics

If you want a say in the management of a corporation, you should buy

A) common stock. B) preferred stock. C) bonds. D) either bonds or preferred stock.

Economics

If a nation's real interest rate fell relative to foreign nations, it would cause net exports to:

a. Fall. b. Rise. c. Remain unchanged. d. It could increase or decrease net exports, depending on the elasticity of demand for foreign exchange.

Economics