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
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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
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.
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.
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.