7. If there is an increase in government spending that is paid for by borrowing A) The real interest rate will decrease in the short run B) Private savings will decrease in the short run C) Potential real output will increase in the long run D) Interest-sensitive private sector spending will increase in the short run E) The rate of physical capital accumulations will decrease in the long run 8. Economic growth is best shown in the AD/AS model as A) rightward shift of the LRAS B) leftward shift of the LRAS C) rightward shift of AD D) leftward shift of AD E) rightward shift of SRAS 9. An increase or improvement of the standard or living would MOST probably come from A) Number of banks B) Size of population C) Size of labor force D) Productivity of labor E) Level of taxation Le grap and on the che conomie of