Exam 9: Economic Growth and Rising Living Standards

Reducing the government's budget deficit will certainly increase economic growth.

Which of the following is a stock variable?

An increase in the supply of labor will,everything else equal,

Which combination of government policies would be most likely to increase labor supply?

-Refer to Figure 9-2.An increase in output from A to B could be caused by an increase in

Growth in employment can result from either an increase in labor supply or an increase in labor demand.

Which of the following would encourage the development of new technologies?

Budget deficits cause interest rates to be high.

The order of Soviet dictator Joseph Stalin to farmers in the 1930s to produce capital equipment rather than food

In the loanable funds market,an increase in the desire to save is translated into a(n)

If you observed the wage rate decreasing while employment increased,which of the following would be a possible explanation?

If the capital stock increases faster than employment,then we would expect

What would be the effect on the loanable funds market of an increase in the corporate profits tax? (Assume that the government maintains a balanced budget. )

Increases in __________ have been responsible for most of the economic growth in the U.S.over the last 50 years.

By driving up interest rates,an increase in investment spending causes

Governments have learned that a(n)

Targeting the wealthy in a less-developed country in order to achieve reductions in poverty can drive the wealthy to relocate.

A decrease in government spending would

Economic growth policies always involve

-Refer to Figure 9-3.An investment tax credit that increases the demand for loanable funds from D₁ to D₂ will increase investment spending by