Economics Chapter 15

Productivity is a measure of: A. quantity of output per worker. B. how hard individuals work, not how much they produce. C. the amount of human capital workers obtain through training and experience. D. the amount of capital per worker.

quantity of output per worker.

The minimum wage is an example of: A. crowding in. B. fiscal stimulus. C. regulation of factor markets. D. monetary policy.

regulation of factor markets.

The primary means of achieving long-run economic growth is: A. increased capacity utilization, which is represented by a movement from a point inside the production possibilities curve to a point on the curve. B. movement from an undesirable point on a given production possibilities curve to a more desirable point on a given production possibilities curve. C. an emphasis on macroeconomic stabilization. D. represented by changes in a nation's productive capacity, represented by an outward shift of the production possibilities curve.

represented by changes in a nation's productive capacity, represented by an outward shift of the production possibilities curve.

Using the "rule of 72" approximately how long will it take for productivity to double with a constant productivity growth rate of 1.5 percent per year? A. 18 years. B. 48 years. C. 72 years. D. 108 years

48 years.

If real GDP was $7,700 billion in 2004 and $8,200 billion in 2005, the economic growth rate was approximately ___ percent. A. 6.1 B. 6.3 C. 6.5 D. 9.3

6.5

If real GDP was $750 billion in 2006 and $800 billion in 2007, the economic growth rate was approximately ___ percent. A. 6.7 B. 6.3 C. 5.0 D. 3.3

6.7

If GDP per capita grows at a constant rate of 9 percent per year, using the "rule of 72" it will take approximately ___ years for GDP per capita to double. A. 7 B. 8 C. 9 D. 16

8

When an economy moves from a point inside its production possibilities curve to a point on its production possibilities curve, it is using all of its productive capacity.

TRUE

Which of the following countries do not levy taxes on capital gains? A. United States B. Canada C. Taiwan D. European Union

Taiwan

If real GDP grows at a constant rate of 2 percent per year, using the "rule of 72" it will take approximately ___ years for real GDP to double. A. 10 B. 15 C. 20 D. 36

36

Political and economic stability are important for long-run economic growth.

TRUE

Productivity can be measured by output per labor hour.

TRUE

Real GDP, not nominal GDP, is used to measure economic growth.

TRUE

The size of the labor force and the quality of labor are impacted by immigration policy.

TRUE

If GDP was $8,400 billion in 2005 and the population was 330 million, then GDP per capita was approximately: A. $8,070. B. $25,455. C. $39,286. D. $84,000.

$25,455.

If GDP was $7,552 billion in 2006 and the population was 270 million, then GDP per capita was approximately: A. $3,575. B. $20,390. C. $27,970. D. $37,798.

$27,970.

If GDP was $7,500 billion in 2007 and the population was 250 million, then GDP per capita was approximately: A. $33,333. B. $32,042. C. $30,000. D. $28,000.

$30,000.

If the total output for an economy is equal to $840 billion and the total number of labor hours is 24 billion, then labor productivity is equal to: A. $201.60 per hour. B. $35.00 per hour. C. $24.00 per hour. D. $18.00 per hour.

$35.00 per hour.

If GDP was $7,300 billion in 2006 and the population was 200 million, then GDP per capita was approximately: A. $27,397. B. $36,500. C. $54,621. D. $71,000.

$36,500.

If the total output for an economy is equal to $750 billion and the total number of labor hours is 20 billion, then labor productivity is equal to: A. $15.00 per hour. B. $20.00 per hour. C. $37.50 per hour. D. $75.00 per hour.

$37.50 per hour.

If real GDP was $600 billion in 2006 and $660 billion in 2007, the economic growth rate was approximately ___ percent. A. 11.2 B. 10.0 C. 9.5 D. 9.1

10.0

If GDP per capita grows at a constant rate of 6 percent per year, using the "rule of 72" it will take approximately ___ years for GDP per capita to double. A. 6 B. 10 C. 12 D. 72

12

If real GDP per capita grows at a constant rate of 4 percent per year, using the "rule of 72" it will take approximately ___ years for real GDP to double. A. 4 B. 9 C. 18 D. 288

18

Supply-side economists believe that: A. Government regulation is necessary to ensure the correct mix of output. B. A decrease in regulation will shift the aggregate supply curve to the right. C. A decrease in regulation will allow producers to abuse consumers. D. Government regulation encourages long-run economic growth.

A decrease in regulation will shift the aggregate supply curve to the right.

Which of the following is most likely to increase aggregate supply? A. An increase in safety regulations. B. A decrease in the capital gains tax. C. An increase in the minimum wage. D. An increase in government borrowing.

A decrease in the capital gains tax.

Which of the following will cause the aggregate supply curve to shift to the left? A. A lower tax rate. B. Deregulation of production processes. C. A higher minimum wage. D. More job and skills training.

A higher minimum wage.

Real GDP measures the: A. Market value of goods and services produced. B. Standard of living. C. Actual quantity of goods and services produced. D. Level of productivity.

Actual quantity of goods and services produced.

Fiscal and monetary policies are used to shift the: A. Aggregate demand curve. B. Aggregate supply curve. C. Production possibilities curve. D. Real GDP curve.

Aggregate demand curve.

Sustained economic growth will only occur when the : A. Aggregate supply curve shifts inward B. Aggregate supply curve shifts outward C. Aggregate supply curve shifts to the left D. Aggregate demand curve and aggregate supply curve shift to the left If an economy is to have sustained growth, then the aggregate supply curve must continue to increase by shifting outward.

Aggregate supply curve shifts outward

Which of the following is definitely true if the production possibilities curve shifts outward? A. Aggregate supply has increased. B. Population has increased. C. GDP per capita has increased. D. Inflation has increased.

Aggregate supply has increased.

Which of the following are sources of increased productivity? A. Improved labor skills achieved by on the job training B. Increases in the amount of capital per worker C. Technological advances D. All of the above are sources of increased productivity.

All of the above are sources of increased productivity.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (2010): A. resulted from the collapse of financial markets in 2008-2009. B. led to huge increases in excess reserves. C. slowed economic recovery from the Great Recession. D. All of these statements are correct.

All of these statements are correct

Increased saving: A. Allows for increased investment. B. Causes a decrease in economic growth. C. Jeopardizes economic freedom. D. Causes crowding out.

Allows for increased investment.

Which of the following can reduce the level of long-run economic growth? A. A decrease in deficit spending by the government. B. An increase in government safety regulations. C. An increase in the savings rate. D. Government enforced property rights.

An increase in government safety regulations.

Which of the following is not a source of productivity gain? A. An increase in population. B. An increase in the ratio of capital to labor. C. Development of better capital equipment and products. D. Better use of resources in the production process.

An increase in population.

When an economy experiences long-run growth there will be: A. An increase in potential GDP. B. An increase in the use of existing productive capacity. C. A shift in aggregate supply to the left. D. A commitment to expansionary fiscal policy.

An increase in potential GDP.

Government policies that support education and job training cause: A. A decrease in GDP per capita, since dollars are not being spent on output. B. An increase in the size of the labor force. C. An increase in productivity. D. An increase in the ratio of capital to labor.

An increase in productivity.

Sources of productivity growth include all of the following except: A. An increase in the ratio of capital to labor. B. An increase in the price level. C. Better use of available resources in the production process. D. An increase in labor skills.

An increase in the price level.

Which of the following will reduce labor productivity? A. An increase in the ratio of labor to capital. B. A higher savings rate. C. An increase in literacy. D. An increase in capital stock.

An increase in the ratio of labor to capital.

Crowding out occurs when the government: A. Increases taxes, thus causing a decrease in consumption. B. Borrows money, thus making it more difficult for the private sector to borrow. C. Prints money, which displaces currency. D. Encourages saving, which makes more dollars available for borrowing.

Borrows money, thus making it more difficult for the private sector to borrow.

GDP per capita is the best measurement for: A. Determining the distribution of output within a country. B. Determining the growth rate of the economy over time. C. Finding the impact of population on GDP. D. Comparing living standards between countries.

Comparing living standards between countries.

A reduction in private-sector borrowing and spending caused by increased government borrowing is known as: A. Crowding up. B. Crowding in. C. Over crowding. D. Crowding out.

Crowding out.

Which of the following can reduce the level of economic growth? A. Crowding out. B. Technological improvements. C. Higher ratios of capital to labor. D. Crowding in.

Crowding out.

Which of the following reduces the level of economic growth? A. Technological improvements. B. Higher ratio of capital to labor. C. Crowding out. D. Research and development.

Crowding out.

Over the last decade, the world has experienced: A. Decreased living standards in some of the poorest countries. B. Increased living standards in all countries. C. Growth in output for all countries. D. Improvements in technology but little change in output.

Decreased living standards in some of the poorest countries.

According to supply-side economists, which of the following encourages economic growth? A. Minimum wage laws. B. Food and drug health standards. C. Transportation regulations. D. Economic freedom.

Economic freedom.

An increase in our production possibilities is known as: A. Inflation. B. Crowding out. C. GDP per capita. D. Economic growth.

Economic growth.

Productivity is definitely enhanced by: A. Higher taxes. B. More government regulation. C. Education and training activities. D. Limits on immigration.

Education and training activities.

The proportion of the adult population that is employed is the: A. Unemployment rate. B. Employment rate. C. GDP per capita. D. Productivity rate.

Employment rate.

Additional capital contributes to economic growth by: A. Replacing labor and increasing unemployment. B. Enhancing labor productivity. C. Replacing manufacturing industries with service industries. D. Giving savers more money to put into investment.

Enhancing labor productivity.

More technically advanced capital makes its contribution to productivity by: A. Replacing labor and increasing unemployment. B. Enhancing labor productivity. C. Increasing profits for producers. D. Increasing nominal GDP.

Enhancing labor productivity.

Long-run economic growth is consistent with: A. Expanding the aggregate demand curve. B. Expanding the production possibilities curve. C. An increase in government spending. D. An increase in GDP per capita.

Expanding the production possibilities curve.

One News Wire article, titled "House Poised to Pass STEM Immigration Bill" explains the Senate immigration bill that favors those with certain job skills and education. This type of immigration policy should cause: A. Short-run changes in capacity use. B. Movement along the production possibilities curve. C. Expansion of the production possibilities curve. D. An increase in unemployment as more workers immigrate.

Expansion of the production possibilities curve.

Economic growth is a(n) _______ process. A. Constant. B. Exponential. C. Arithmetic. D. Linear.

Exponential.

An increase in nominal GDP means that there has been an outward shift of the production possibilities curve.

FALSE

Crowding in directly limits private investment and can constrain economic growth.

FALSE

GDP per capita measures worker productivity.

FALSE

If a country's population growth exceeds its GDP growth, then the GDP growth per capita will increase.

FALSE

Improved management has made the greatest contribution to economic growth in the United States.

FALSE

Increased capital investment is possible only if saving is reduced or consumption increases.

FALSE

Rising employment rates imply falling GDP per capita.

FALSE

Short-run economic policy attempts to shift the production possibilities curve outward.

FALSE

Sustained increases in total output are possible if aggregate supply shifts to the left.

FALSE

There is an inverse relationship between the growth rate of capital and the growth rate of an economy.

FALSE

To calculate real GDP for each year, the value of goods and services is measured in the actual prices of each year.

FALSE

When an economy moves from a point inside its production possibilities curve to a point on the curve, potential GDP has increased.

FALSE

When corporate managers reduce investment spending, long-run profitability is likely to increase.

FALSE

When living standards rise because of an increase in GDP per capita, the amount of leisure time decreases.

FALSE

To produce a combination of goods and services beyond the current production possibilities curve, an economy must: A. Use more of the available resources and technology. B. Raise the prices of goods and services so that firms will produce more. C. Find more resources or develop new technology. D. Experience population growth.

Find more resources or develop new technology.

GDP per capita is: A. the amount of GDP produced per unit of capital equipment. B. GDP divided by the total population. C. the amount of GDP produced by an individual state. D. GDP multiplied by the total population.

GDP divided by the total population.

One News Wire article is titled "What Economic Growth Has Done for U.S. Families." Living standards can best be measured using: A. GDP per capita. B. The growth rate of GDP. C. Nominal GDP. D. The employment rate.

GDP per capita.

The best measurement for comparing the standard of living between two countries is: A. The ratio of current GDP to GDP in the base period. B. GDP per capita. C. Investment as a percentage of GDP. D. GDP per worker.

GDP per capita.

Which of the following is the best measure of living standards for an economy? A. GDP per worker. B. Nominal GDP. C. GDP per capita. D. Population growth.

GDP per capita.

Which of the following policies does not shift the aggregate supply curve to the right? A. Education and training programs. B. Government budget deficits. C. Tax incentives to increase exploration for natural resources. D. Increased immigration.

Government budget deficits.

Which of the following does not contribute to economic freedom? A. Government regulation of production processes. B. Government enforced property rights. C. Government enforced legal rights. D. Government established political rights.

Government regulation of production processes.

Which of the following statements about long-run economic growth is true? A. Growth is compounded from one year to the next. B. Growth is always occurring for rich countries. C. Growth this year does not impact growth next year. D. Poor countries are incapable of growth.

Growth is compounded from one year to the next.

Real GDP is the most effective measure for determining the: A. Income level per household. B. Change in the price level. C. Standard of living across countries. D. Growth rate of the economy over time.

Growth rate of the economy over time.

The change in real output between two time periods divided by total output in the base period is the formula for: A. Level of productivity. B. Growth rate. C. Production possibilities. D. Net investment.

Growth rate.

Which of these is true about regulations imposed on product markets in the United States? A. Health and safety standards are set by the Food and Drug Administration. B. The Federal Trade Commission determines routes and pricing for railroads, truckers, and interstate bus lines. C. The regulations were originally designed to improve the delivery of specific public goods. D. All of the above are correct.

Health and safety standards are set by the Food and Drug Administration.

Government policies that shift aggregate supply to the right include: A. Immigration preferences based on potential productivity. B. Increased transfer payments to the unemployed. C. Elimination of training programs for the structurally unemployed. D. Reduction in job search assistance.

Immigration preferences based on potential productivity.

In addition to generating more output, economic growth can also contribute to: A. Improved health for workers. B. Increased unemployment for workers. C. Decreased productivity. D. A more equitable distribution of output.

Improved health for workers.

Which of the following does not contribute to an increase in productivity? A. Research and development. B. Income transfers. C. Capital investment. D. Improvements in the quality of labor.

Income transfers.

Dollars spent on education and training: A. Increase short-run growth but not long-run growth. B. Increase both short-run and long-run growth. C. Increase long-run growth but not short-run growth. D. Affect the level of productivity but do not affect growth.

Increase both short-run and long-run growth.

Government policies to encourage saving are meant to: A. Increase economic growth. B. Decrease aggregate supply. C. Increase the level of consumption. D. Increase the price level.

Increase economic growth.

A major goal of long-run economic policy is to: A. Increase food production. B. Reduce transfer programs. C. Increase potential GDP. D. Increase population.

Increase potential GDP.

Short-run economic growth comes from: A. Expanding the production possibilities curve. B. A rightward shift of aggregate supply. C. Increased or more efficient use of existing resources. D. A population decrease which increases output per person.

Increased or more efficient use of existing resources.

In recent decades, a primary source of long-run growth in U.S. output has been: A. Increased capacity utilization. B. A reduction in structural unemployment. C. Increased output per worker. D. Rapid growth of the money supply.

Increased output per worker.

Which of the following is not likely to contribute to gains in productivity? A. Greater expenditures on training and education. B. Improved management. C. Greater expenditures on research and development. D. Increased unemployment benefits.

Increased unemployment benefits.

Continual increases in GDP per capita are most likely to come from: A. Increases in output per worker. B. Increases in the employment rate. C. Decreases in population growth. D. Increases in inflation.

Increases in output per worker.

Improved labor skills contribute to growth of the economy by: A. Increasing productivity. B. Raising savings rates. C. Raising investment rates. D. Replacing capital.

Increasing productivity.

All persons over age 16 who are either working for pay or actively seeking paid employment defines: A. Labor force. B. Employment rate. C. GDP per capita. D. Productivity rate.

Labor force.

The News Wire article, titled "House Poised to Pass STEM Immigration Bill" explains the Senate immigration bill that favors those with certain job skills and education. This type of immigration policy focuses on: A. Investment incentives. B. Labor productivity. C. Capital gains taxes. D. Research and development.

Labor productivity.

Small differences in annual growth rates accumulate into: A. Small differences in GDP. B. Large differences in GDP. C. A leftward shift of the aggregate demand curve. D. An increase in population.

Large differences in GDP.

One News Wire article, titled "House Poised to Pass STEM Immigration Bill" explains the Senate immigration bill that favors those with certain job skills and education. This type of immigration policy contributes to: A. Unemployment of labor. B. An inward shift in the production possibilities curve. C. Population growth. D. Long-run economic growth.

Long-run economic growth.

Which of the following policies does not shift the aggregate supply curve to the right? A. Deregulation. B. Tax cuts. C. Job training programs. D. Minimum-wage laws.

Minimum-wage laws.

Which of the following is true if an economy is producing inside its production possibilities curve? A. There are not enough resources available to reach the curve. B. More output can be produced with existing resources. C. The available technology is limiting the level of production. D. The economy is producing the maximum potential output.

More output can be produced with existing resources.

In order to maximize the potential of workers, managers should: A. Watch workers closely so they don't become lazy. B. Offer incentives to workers. C. Require a certain level of productivity from each worker. D. Limit coffee breaks and shorten lunch hours.

Offer incentives to workers.

Growth in GDP per capita can only occur if the growth in: A. Output is greater than the growth in population. B. Employment is greater than the growth in prices. C. Population is greater than the growth in unemployment. D. Prices is greater than the growth in output.

Output is greater than the growth in population.

Which of the following is used to measure labor productivity? A. Labor input divided by total output. B. Output per labor hour. C. Hourly wage rate divided by output per labor hour. D. Dollar value of inputs per unit of output.

Output per labor hour.

Growth in GDP per capita is only possible if growth in _______ exceeds growth in _______. A. Employment; output B. Output; prices C. Prices; employment D. Output; population

Output; population

Which of the following explains why GDP per capita is likely to decline in less developed countries? A. Unemployment growth is greater than population growth. B. Population growth is greater than inflation. C. GDP growth is greater than capital investment growth. D. Population growth is greater than GDP growth.

Population growth is greater than GDP growth.

The production possibilities curve represents the: A. Actual GDP that is being produced. B. Potential output that could be produced. C. Potential GDP per capita that could be attained. D. Actual population growth that is occurring.

Potential output that could be produced.

By using all available resources and technology the economy will: A. Shift aggregate supply to the right. B. Shift the production possibilities curve to the right. C. Experience long-run economic growth. D. Produce at a point on the production possibilities curve.

Produce at a point on the production possibilities curve.

A major goal of short-run macroeconomic policy is to move to a point on the _____ curve. A. Investment demand B. Production function C. Production possibilities D. Aggregate supply

Production possibilities

Once an economy is on its production possibilities curve, further economic growth requires an expansion of productive capacity.

TRUE

Long-run macroeconomic policy focuses on shifting the: A. Aggregate supply curve to the left. B. Production possibilities curve outward. C. Aggregate demand curve to the left. D. Money supply curve to the right.

Production possibilities curve outward.

The alternative combinations of goods and services that could be produced with all available resources and technology is the: A. GDP per capita. B. Real GDP. C. Aggregate supply curve. D. Production possibilities.

Production possibilities.

Output per labor hour is used to measure: A. Production possibilities. B. Nominal GDP. C. Employment rate. D. Productivity.

Productivity.

_____ GDP is the value of output measured in constant prices or GDP adjusted for inflation. A. Nominal B. Current C. Real D. Green

Real

The growth rate refers to the change in _______ from one period to another. A. Standard of living. B. Population. C. Nominal GDP. D. Real GDP.

Real GDP.

Which of the following is the best measure of the actual quantity of goods and services produced by an economy? A. Nominal GDP. B. Real GDP. C. Real GDP per capita. D. GDP per worker.

Real GDP.

Which of the following measures the actual quantity of goods and services produced in the United States? A. Nominal GDP. B. GDP per worker. C. Real GDP per capita. D. Real GDP.

Real GDP.

Increases in productivity in the United States since 1929 are mostly due to: A. Increases in the quantity of labor. B. Increases in the number of U.S. firms. C. Research and development. D. The high salaries paid to workers.

Research and development.

Which of the following has historically made the greatest contribution to U.S. economic growth? A. Research and development. B. Improved management training. C. Increased worker productivity. D. Better education and training for workers.

Research and development.

Which of the following is credited with making the greatest contribution to economic growth over time for the United States? A. Improved management techniques. B. Investment in capital. C. Research and development. D. Increased education.

Research and development.

A decrease in the tax rate on capital gains can: A. Reduce the level of investment. B. Result in economic growth. C. Reduce the level of saving. D. Cause crowding out.

Result in economic growth.

Crowding out is most likely to occur when the federal government: A. Runs a surplus and pays off part of the debt. B. Balances the budget. C. Runs a deficit and raises taxes to generate more revenue. D. Runs a deficit and borrows money to finance its spending.

Runs a deficit and borrows money to finance its spending.

Which of the following statements is true regarding crowding out? A. Saving is diverted from business investment to government spending. B. Businesses that pay less than minimum wage are forced to close. C. Consumption is encouraged because property rights are protected. D. Immigrants without the required skills are forced out of the labor market.

Saving is diverted from business investment to government spending.

Which of the following government policies will shift aggregate supply to the right? A. Setting immigration preferences based on potential productivity. B. Increasing transfer payments to the unemployed. C. Eliminating government-funded training programs for the structurally unemployed. D. Eliminating job-search assistance.

Setting immigration preferences based on potential productivity.

Long-run economic growth policies focus on: A. Shifting the aggregate demand curve to the left. B. Moving the economy along the production possibilities curve. C. Shifting the production possibilities curve outward. D. Moving the economy onto the production possibilities curve.

Shifting the production possibilities curve outward.

GDP per capita is the best measurement for determining the: A. Impact of the marginal tax rate on AS. B. Rule of 72. C. Standard of living. D. Productivity of the work force.

Standard of living.

A sustained increase in total output is possible only if the aggregate _____ curve shifts to the _____. A. Supply; left B. Supply; right C. Demand; left D. Demand; right

Supply; right

Capital investment is a primary determinant of productivity and growth.

TRUE

Ceteris paribus, if the labor force becomes more educated, then productivity increases.

TRUE

Deregulation shifts the aggregate supply curve to the right by reducing costs and releasing resources for other uses.

TRUE

Education, training, and immigration policies have their principal impact on aggregate supply.

TRUE

GDP per capita is used to measure the standard of living.

TRUE

Growth in GDP per capita has allowed Americans to live longer and consume more goods and services.

TRUE

If growth in output exceeds growth in population, then GDP per capita increases.

TRUE

In the long run, research and development is credited with the greatest contributions to economic growth.

TRUE

Long-run economic growth requires an increase in potential GDP.

TRUE

Nominal GDP is the total value of goods and services produced within a nation's borders measured in current prices.

TRUE

A News Wire article is titled "What Economic Growth Has Done for U.S. Families." Which of the following changes is likely as a result of economic growth? A. A shorter life span. B. Less leisure time. C. The ability to consume more goods. D. A decrease in productivity.

The ability to consume more goods.

Which of the following is the best measure of the growth rate of the economy? A. The percentage change in real GDP. B. Investment as a percentage of real GDP. C. Real GDP per capita. D. Real GDP per worker.

The percentage change in real GDP.

Ceteris paribus, when new immigrants enter a country: A. Production possibilities decrease. B. Aggregate supply shifts to the left. C. The size of the labor force increases. D. Crowding in occurs.

The size of the labor force increases.

Which of the following is definitely true when nominal GDP increases? A. The standard of living improves. B. The amount of output increases. C. The value of output increases. D. The production possibilities curve shifts outward.

The value of output increases.

Which of the following would result in a decrease in productivity? A. More workers are graduating from college. B. There is an increase in the number of workers and less investment in capital C. An improvement in the use of better quality capital investments D. All of the above would result in an increase in productivity

There is an increase in the number of workers and less investment in capital

If an economy moves from a point inside the production possibilities curve to a point on the curve: A. There is increased use of the productive capacity. B. The level of unemployment has increased. C. The available resources must have increased. D. The level of technology must have increased.

There is increased use of the productive capacity.

GDP per capita is: A. Total GDP multiplied by total population. B. Total GDP divided by total population. C. Total output divided by total labor force. D. The percentage change in real GDP from one period to another.

Total GDP divided by total population.

Short-run economic growth focuses on: A. Using all the available resources and technology. B. Increasing the amount of available resources. C. Improving the level of technology. D. Holding the population level constant while growing GDP.

Using all the available resources and technology.

Supply-side economists argue ______ the regulation of product markets because regulation _______ economic growth. A. in favor of; stimulates B. against; stimulates C. in favor of; inhibits D. against; inhibits

against; inhibits

In 2006, the U.S. savings rate was: A. positive. B. negative. C. zero. D. at a record high level.

negative.

Economic growth is only possible if the long-run aggregate ______ curve shifts to the ______. A. supply; right B. supply; left C. demand; right D. demand; left

supply; right

Policy levers for increasing economic growth rates include increased: A. support for education and training programs. B. taxes on savings and capital gains. C. government borrowing. D. regulations to require the production of more socially desirable goods and services.

support for education and training programs.