Which of the following will most likely lead to long-term economic growth?

Question 24 options:

A)

An increase in consumer spending.

B)

An increase in the quality of labour resources.

C)

A decrease in the interest rate.

D)

A decrease in the quantity of labour resources.

E)

A decrease in the price level.

Question 25(1 point)

Which component of aggregate demand is most likely to change as a result of the interest-rate effect?

Question 25 options:

A)

Government spending.

B)

Imports.

C)

Consumption.

D)

Exports.

E)

Investment.

Question 26(1 point)

Which of the following is true of a recessionary gap?

Question 26 options:

A)

It is correctly described as "too much money chasing too few goods."

B)

Firms have no incentive to produce more because they can't sell additional output.

C)

Firms will decrease output because the price level is low.

D)

Firms will increase output because Real GDP is below Potential GDP.

E)

Firms have no incentive to produce more because it's very expensive to employ more labour.

Question 27(1 point)

Which of the following is true of an inflationary gap?

Question 27 options:

A)

People are trying to buy more than the economy can produce on a sustainable basis.

B)

The level of aggregate demand is equal to Potential GDP.

C)

It is often described as "too much money chasing too many goods."

D)

It is often described as "too little money chasing too many goods."

E)

The level of aggregate demand is greater than the level of aggregate supply.

Question 28(1 point)

What is real wage?

Question 28 options:

A)

It is equal to the nominal wage minus the price level.

B)

It is equal to the nominal wage divided by the price level.

C)

It is equal to the nominal wage multiplied by the price level.

D)

It is equal to nominal wage plus the price level.

Question 29(1 point)

An increase in exports will have what effect on aggregate demand?

Question 29 options:

A)

It will increase.

B)

It may increase or decrease depending on the marginal propensity to import.

C)

It will decrease.

D)

It will have no effect on aggregate demand.

Question 30(1 point)

If the MPE is 0.9, what will be the value of the multiplier?

Question 30 options:

A)

0.9.

B)

10.

C)

1.

D)

0.1.

E)

1.67.

Question 31(1 point)

Assume the MPE has a value of 0.8 and investment spending increases by $5 billion, what will the level of GDP increase by?

Question 31 options:

A)

$25 billion.

B)

$4 billion.

C)

$1 billion.

D)

$20 billion.

E)

$40 billion.

Question 32(3 points)

The following figure depicts the economy of Atlas, which is presently in equilibrium.

a) What is the size of its recessionary gap?

b) What is the size of its gap as a percentage of its actual GDP?

c) If the natural rate of unemployment is 5 percent, using Okun's Law, calculate the amount of unemployment in Atlas.

Question 32 options:

Question 33(3 points)

Assume that the economy is at full employment. Now suppose there is an increase in consumption. At the new equilibrium,

a) will there be an output gap? What type?

b) what is the effect on the price level?

c) what is the effect on the level of Real GDP

Question 33 options:

Question 34(3 points)

Assume that the economy is at full employment. Now suppose there is an increase in the size of the labour force. At the new equilibrium,

a) Will there be an output gap? What type?

b) What is the effect on the price level?

c) What is the effect on the level of Real GDP?

Question 34 options:

Question 35(2 points)

Assume that the nominal wage rate increases from $16.50 to $18.40 and, at the same time, the price index increases from 110 to 115. By how much has the real wage rate changed?

Question 35 options:

Question 36(3 points)

In Altus, income rose by $80 billion over the past year. During the same period, its aggregate expenditures increased by $55. What are the values of its MPE, MLR and multiplier?

Question 36 options:

can you please help me with the answers