of $37$

Aggregate Demand and Supply $-$ Around the World

Botswana's recent economic growth has had a widespread impact on Botswana's economy. In each scenario, determine which segment of the economy is directly affected.

a$.$ As more jobs are created, individuals who were not previously working begin searching for work, increasing the labor force participation rate. Increased labor force participation leads to an increase in

b$.$ A renewed sense of enthusiasm among workers increases labor productivity. Increases in labor productivity lead to an increase in

c$.$ Greater access to foreign markets has allowed Botswana's businesses to sell their goods in the global economy. Selling goods internationally leads to an increase in

According to Keynesian analysis, if households intend to save more, they will:

$$ ultimately spend more.

cause jobs to increase because investment will increase.

ultimately cause job losses.

cause the GDP to increase because inflation will decrease.

According to Keynesian analysis, if households intend to save more, they will:

$$ ultimately spend more.

cause jobs to increase because investment will increase.

ultimately cause job losses.

cause the GDP to increase because inflation will decrease.