Podcast
Questions and Answers
According to the text, what happens to aggregate supply when labor costs, raw material prices, and energy prices decrease?
According to the text, what happens to aggregate supply when labor costs, raw material prices, and energy prices decrease?
- Aggregate supply fluctuates
- Aggregate supply increases (correct)
- Aggregate supply remains unchanged
- Aggregate supply decreases
From an investment perspective, what is the suggested action when there is a decline in aggregate supply (leftward shift of the SRAS curve)?
From an investment perspective, what is the suggested action when there is a decline in aggregate supply (leftward shift of the SRAS curve)?
- Reduce investment in fixed income (correct)
- Increase investment in real estate
- Increase investment in most equity securities
- Increase investment in commodities or commodity-based companies
What happens to the AS curve when there is higher productivity growth?
What happens to the AS curve when there is higher productivity growth?
- The AS curve fluctuates
- The AS curve remains unchanged
- The AS curve shifts to the left
- The AS curve shifts to the right (correct)
What are the investment implications when there is an increase in aggregate supply (rightward shift of the SRAS curve)?
What are the investment implications when there is an increase in aggregate supply (rightward shift of the SRAS curve)?
Which of the following is a key determinant of economic growth?
Which of the following is a key determinant of economic growth?
What does the labor share measure in the growth accounting equation?
What does the labor share measure in the growth accounting equation?
Which sector has made a significant contribution to economic growth, employment, and exports in developed countries?
Which sector has made a significant contribution to economic growth, employment, and exports in developed countries?
What does the growth accounting equation in per capita terms explain?
What does the growth accounting equation in per capita terms explain?
Which of the following factors is NOT considered in the measurement of Total Factor Productivity (TFP)?
Which of the following factors is NOT considered in the measurement of Total Factor Productivity (TFP)?
What is the labor force defined as?
What is the labor force defined as?
What does human capital reflect?
What does human capital reflect?
What is the correlation between investment (as a percentage of GDP) and economic growth?
What is the correlation between investment (as a percentage of GDP) and economic growth?
Which of the following is a characteristic of renewable resources?
Which of the following is a characteristic of renewable resources?
Which countries have relatively high per capita incomes due to their resource base?
Which countries have relatively high per capita incomes due to their resource base?
What are externalities in the context of public infrastructure?
What are externalities in the context of public infrastructure?
What is the relationship between carbon dioxide emissions and economic growth?
What is the relationship between carbon dioxide emissions and economic growth?
Which of the following statements is true about economic growth?
Which of the following statements is true about economic growth?
What is the neoclassical or Solow growth model based on?
What is the neoclassical or Solow growth model based on?
What does potential GDP measure?
What does potential GDP measure?
Why is there a limit to how fast an economy can grow?
Why is there a limit to how fast an economy can grow?
According to the text, what does the parameter A represent in the production function Y = AF(L,K)?
According to the text, what does the parameter A represent in the production function Y = AF(L,K)?
What does the assumption of constant returns to scale in the production function mean?
What does the assumption of constant returns to scale in the production function mean?
What does diminishing marginal productivity mean in the context of the production function?
What does diminishing marginal productivity mean in the context of the production function?
According to the text, what is the only way to sustain growth in potential GDP per capita in the long run?
According to the text, what is the only way to sustain growth in potential GDP per capita in the long run?
Which factors can influence innovative activity and economic growth?
Which factors can influence innovative activity and economic growth?
What is potential GDP?
What is potential GDP?
How can economists estimate potential GDP?
How can economists estimate potential GDP?
What is labor productivity?
What is labor productivity?
Why is understanding changes in potential GDP important for financial analysts?
Why is understanding changes in potential GDP important for financial analysts?
Why is using total hours worked important when calculating labor productivity?
Why is using total hours worked important when calculating labor productivity?
