Part I. Multiple Choice Q1. If nominal GDP is rising faster over time than real GDP, this is due to: a) Capital accumulation b) Ination c) Technology growth d) Population growth Q2. Which of the following properties does this production function exhibit: Y = 2K + 3L a) Constant returns to scale b) Diminishing marginal product of labor c) Diminishing margin product of capital d) All of the above Q3. Suppose output per capita can be written as y = 131;. If observed GDP per capita is 2.46 and capital per person is 1.6, what is the level of TFP implied by this model? a) 0.32 b] 1.2 c) 1.54 d) 0.56 Q4. Which of the following will increase US GDP? 3.) an increase in stock market prices b) an increase in social security payments c) a decrease in the foreign aid for developing countries by the US government (1) an increase of projects to x old roads Q5. If the US GDP doubles every 10 years, then the growth rate of the US GDP is: a) 0.07 b) 0.7 c) 0.5 d] 0.035