31.Long-run economic growth depends almost entirely on:

a.labor productivity growth

b.population growth

c.agricultural production growth

d.the number of hours worked.

32.According to Keynesian economics, a tax cut will _____________ aggregate demand and output by _______________

a.increase; decreasing exports

b.increase; increasing income and consumption

c.increase; decreasing government spending

d.decrease; decreasing incentives to work and save

33.The rule of 70 indicates that a 10% annual increase in the potential level of real GDP would lead to the potential output doubling in _______ years

a.7

b.12

c.14

d.20

34.One of the advantages of adopting a Fixed Exchange Rate system is that:

a.it reduces uncertainty

b.it reduces the need for fiscal policy

c.it increases the strength of monetary policy

d.it does not require the country to maintain any large foreign exchange reserve

35.Ifin country A total GDP is $19,875 billion and population is277 million per capita GDP is

a.$1.39 billion

b.$71,750.90.

c.$277,000.00

d.non of the above.