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 Q4. Which of the following will increase US GDP? a) 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 d) an increase of projects to x old roads Q6. Consider the variables x, y, w. Assume that the growth rates of these variables are given by g(:c) = 0.05, g(y) = 0.05, and g(w) = 0.06. Then the growth rate of the variable 2 = (EV/3 is approximately equal to Q7. Suppose we calculate the percent change in real GDP from year 1 to year 2 using both the Laspeyres and the Paasche indices. With the Laspeyres index we get 15 percent and with the Paasche index we get 6 percent. The chainweighted growth of real GDP is: a) 1.5 percent b) 9.5 percent c) 9.75 percent d) 10.5 percent Q8. This year, a real estate agent helped you buy a house for $200,000. The house was originally built in 1985. The agents commission was $12,000. How will this transaction affect this years GDP? a) Consumption expenditures will increase by $212,000. b) Consumption expenditures will increase by $12,000. c) Investment expenditures will increase by $212,000. d) Investment expenditures will increase by $200,000