Fill in the blanks to make the following statements correct a. Long-run sustained increases in potential output are called __________. b. Increases in material living standards occur with increases in real __________. c. An important cost of economic growth is the sacrifices of current __________ in exchange for investment that raises future __________. 2. a. An increase in the real interest rate leads to a(n) __________ in the amount of national saving as households reduce their __________. b. An increase in the interest rate leads firms to __________ their amount of desired investment. c. In the long run, with output equal to potential, equilibrium in the market for financial capital determines the interest rate as well as the amount of __________ and __________ in the economy. d. Following a shift in either the supply of national saving or the demand for investment, there will be a change in both the equilibrium __________ and the amount of __________ in the economy. 3. Fill in the blanks to make the following statements correct. a. 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 __________