An increase in the capital stock would shift the production function _______ and the long-run aggregate supply curve to the _______.
A. upward; right
B. upward; left
C. downward; left
D. to the right; right
Ans: A. upward; right
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In reviewing discussions of life in developing countries, what is it about lifestyles in the low-income countries compared with lifestyles in the high-income countries that most strikes you? Why?
What will be an ideal response?
In Keynes's view, an excess quantity of money demanded causes people to:
A. sell bonds and the interest rate rises. B. buy bonds and the interest rate falls. C. buy bonds and the interest rate rises. D. increase speculative balances.
In the late 1990s, Thailand, Malaysia, and Indonesia all experienced sharp declines in the value of their currencies; this resulted in economic instability and crisis. The collapse in the values of their currencies undermined their development by:
A. decreasing political instability. B. decreasing population growth. C. increasing corruption. D. reducing investment.
Population growth is more likely to contribute to economic growth when
A. economic freedom is present. B. technological progress is limited. C. the labor force participation rate does not increase. D. capital accumulation is limited.