Without notice, investment spending dramatically rises in the United States. Explain the impact of this sudden increase in investment spending on each of the following for the United States.

1. Aggregate Demand
2. Output
3. Real capital
4. The Production Possibilities Curve
5. Long-run Aggregate Supply

Which of the following would economists identify as the strongest source of long term economic growth in an economy?

Higher investment tax credits

Higher consumer spending

Fewer capital stock purchases

A tariff on foreign imports

Higher government spending

Pineland and Vineland are two nations located in the same region. Pineland's real GDP is now growing at a rate of 7% due to aggressive government policies while Vineland's real GDP is slowly increasing at a rate of 2%. How quickly will it take for Pineland's real GDP to double if growth continues at this rate?

7 years

10 years

14 years

35 years

70 years

Which of the following would not cause a shift in long-run aggregate supply?

An increase in aggregate expenditures.

A decrease in capital investment.

A technological advance in the consumer goods market.

An increase in education for employees.

An influx of skilled immigrants.