Summarize the four supply factors in economic growth.
What will be an ideal response?
The four supply factors in economic growth are the quantity and quality of the natural resource base, the quantity and quality of the labor force, the supply or stock of capital goods, and the state of technology. Expansion or improvement in any of these areas will increase the potential size of an economy’s GDP.
You might also like to view...
If the absolute value of the tax elasticity of supply is 0.8, a tax decrease of 10 percent will
A. Decrease output by 12.5 percent and increase tax revenues. B. Increase output by 12.5 percent and increase tax revenues. C. Increase output by 8 percent and decrease tax revenues. D. Decrease output by 8 percent and increase tax revenues.
A recessionary gap exists when:
A. output exceeds aggregate demand. B. actual output exceeds potential output. C. aggregate demand exceeds output. D. potential output exceeds actual output.
The net worth of a bank is defined as the difference between
A. income and expenses. B. assets and liabilities. C. loans and deposits. D. loans and reserves.
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.