Krugman's Economics for AP

Margaret Ray

Chapter 40 Economic Growth in Macroeconomic Models - all with Video Answers

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Chapter Questions

Problem 1

Which of the following will shift the production possibilities curve outward?
I. an increase in the production of investment goods
II. an increase in the production of consumer goods
III. technological progress
a. I only
b. II only
c. III only
d. I and III only
e. I, II, and III

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Problem 2

In the production possibilities curve model, long-run economic growth is shown by $\mathrm{a}(\mathrm{n})$
a. outward shift of the PPC.
b. inward shift of the PPC.
c. movement from a point below the PPC to a point on the PPC.
d. movement from a point on the PPC to a point below the PPC.
e. movement from a point on the PPC to a point beyond the PPC.

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Problem 3

The reduction in the value of an asset due to wear and tear is known as
a. depreciation.
b. negative investment.
c. economic decline.
d. disinvestment.
e. net investment.

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03:09

Problem 4

In the aggregate demand-aggregate supply model, long-run economic growth is shown by a
a. leftward shift of the aggregate demand curve.
b. rightward shift of the aggregate demand curve.
c. rightward shift of the long-run aggregate supply curve.
d. rightward shift of the short-run aggregate supply curve.
e. leftward shift of the short-run aggregate supply curve.

Doris Bennett

Numerade Educator

01:59

Problem 5

Which of the following is listed among the key sources of growth in potential output?
a. expansionary fiscal policy
b. expansionary monetary policy
c. a rightward shift of the short-run aggregate supply curve
d. investment in human capital
e. both a and b

Banhishikha Sinha

Numerade Educator