) An important aspect of the Neoclassical growth model is that increases in the supply of one factor, all else held constant, imply eventually marginal returns to that factor. b) In the Neoclassical growth model, an increase in the labour force (with capital held constant) will total output and the level of per capita output. c) When a new and better harvesting machine replaces an old harvesting machine on a farm and is more productive than the old one, we say there has been technical change. d) Some advanced growth theories are based on the assumption that technological change is to the economic system; others are based on the possibility that there are marginal returns to investment. e) Neoclassical growth theories are pessimistic because they emphasize returns with a given state of Advanced growth theories are more optimistic because they emphasize the unlimited potential of 3. Fill in the blanks to make the following statements correct. a) There are multiple measures of the money supply in Canada because, in addition to currency in circulation, there are many different types of bank b) The distinctions in the measures of the money supply generally reflect the different ability to convert funds from the deposit into c) The most general definition of the money supply is the sum of and I) A term deposit at a bank does not fulfill the role of money. However, it can be easily converted into a deposit that does fulfill this role. For this reason, a term deposit is referred to as