Expected deflation can reduce Aggregate Demand by

Reducing the willingness to purchase big-ticket items

A country's Real GDP can increase for brief periods of time

If either aggregate demand or its aggregate supply increases

The greatest threat to continued growth in the developed countries might be

Restrictive regulatory policies

Increases in worker productivity usually reflect

Increased education and improved equipment

Increases in worker productivity usually reflect policies that encourage

Investment in physical and human capital

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Macroeconomics: Economic Growth

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Adriana Serna

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Questions 15

Answers

1
Investment in physical and human capital is typically encouraged by
Lower taxes on interest income
Lower taxes on returns to education
All of the above
Lower taxes on investment returns
2
Expected deflation can reduce Aggregate Demand by
Reducing the government's budget deficit
Reducing the willingness to purchase big-ticket items
Reducing the purchasing power of money
Increasing nominal interest rates
3
A country's Real GDP can increase for brief periods of time
If either aggregate demand or its aggregate supply increases
Only if both aggregate demand and aggregate supply increases
Only if its aggregate supply increases
Only if its aggregate demand increases
4
Aggregate Demand is increased by
Increased consumer confidence
Increased interest rates
Increased taxes
A stronger currency
5
The greatest threat to continued growth in the developed countries might be
Low inflation rates
Moderate marginal tax rates
Restrictive regulatory policies
Low interest rates
6
Aggregate Supply can always be increased as workers
Work smarter, better and more efficiently
Both A and C
Are provided with better education, tools, and technology
Work harder
7
In developing economies, a fraction of the economy in non-market transactions can be as much as
75 percent
10 percent
25 percent
50 percent
8
As Real GDP increases, ceteris paribus, the slope of the Aggregate Supply curve
Increases
Decreases
Is always zero
Remains unchanged
9
Aggregate Supply increases when
Wages fall
Government regulations prolifera
Raw materials prices rise
Wages rise
10
Increases in worker productivity usually reflect
Growth of labor unions
Increased education and improved equipment
Management that pushes workers to work longer and harder
Elimination of unemployment benefit programs
11
The ultimate source of long-term growth in already developed countries is
Larger and more powerful government
Increased worker productivity
A workforce that always works harder
Unrestricted immigration
12
Aggregate Demand is reduced by
Reduced taxes
Increased interest rates
A stronger dollar
Increased government spending
13
Aggregate Supply decreases when
Worker productivity increases
Technology improves
Wages rise
Raw materials prices fall
14
Sustainable economic growth depends upon
Neither saving nor investment
Both saving and investment
Saving, not investment
Investment, not saving
15
Increases in worker productivity usually reflect policies that encourage
Population growth
Consumption
Extensive government regulation of business
Investment in physical and human capital

Macroeconomics: Economic Growth Flashcards | StudBud