Exam 9: Economic Growth and Rising Living Standards

Which of the following best describes what has happened to the U.S.labor supply and labor demand over the past 50 years?

-Refer to Figure 9-3.The elimination of an investment tax credit that decreases the demand for loanable funds from D₂ to D₁ will decrease investment spending by

Which of the following is a common way of measuring the average standard of living?

A tax imposed on the part of income that households spend is known as a

A decrease in the government's budget deficit will

Investment spending is a stock variable.

-Refer to Figure 9-4.Which of the following policies would most likely shift the supply of loanable funds curve from S₁ to S₂?

Which of the following would cause the production function to shift upward?

The three most important sources of economic growth are

One way to increase labor force participation is to cut income tax rates.Which of the following is true given such a scenario?

One way for a less-developed country to break its cycle of poverty is to target the wealthy.

An increase in labor force participation will increase output and living standards at the cost of

Economic growth caused by increased employment creates a trade-off between income and

Whether or not a reduction in the budget deficit is a pro-growth measure depends on how the budget deficit shrinks.

What would happen to a production possibilities frontier (with capital goods measured on the vertical axis and consumption goods on the horizontal axis)if there is an increase in the labor force?

Gross Domestic Product (GDP)per capita is

Which of the following would decrease the likelihood that foreign business firms will invest in a country?

For the capital stock to grow,production of capital goods must

In the 1970s and 1980s policies that required retirement of people over age 65 were repealed.Which variable would this directly affect?

Capital is a stock variable.