The growth rate of potential GDP depends, among other factors, on the
a. rate of technological progress.
b. unemployment rate.
c. size of the labor force.
d. rate of capital stock depreciation.
a
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If the quantity of money supplied exceeds the quantity of money demanded, at a point in time: a. the price level in the economy will fall
b. the equilibrium interest rate will fall. c. the equilibrium interest rate will fall. d. the money demand curve will shift to the right. e. the money demand curve will shift to the left.
Which of the following will bring about an inward shift of a production possibilities curve [PPC]?
a. A decrease in the amount of resource employment b. An increase in the working-age population c. An increase in unemployment d. A decrease in the availability of natural resources e. An increase in the amount of capital available
Which of the following was an argument for using fiscal policy in situations like the Great Recession?
a. Congress can act quickly. b. The size of a recessionary gap may require the use of both fiscal and monetary policy. c. Once the federal funds rate is reduced to zero, monetary policy is less effective. d. all of the above
What was the country’s trend rate of growth over this period?
Year || Growth Rate 1 5% 2 3 3 4 4 - 1 5 - 2 6 2 7 3 8 4 9 6 10 3