Author Question: Which of the following stands true for the determinants of growth? a. The long-run aggregate supply ... (Read 52 times)

chads108 · **on:** Jun 30, 2018

Which of the following stands true for the determinants of growth?
a. The long-run aggregate supply curve is a horizontal line at the potential level of real GDP.
b. Land can be combined with labor and capital to produce goods and services.
c. The labor force typically grows more rapidly in industrial countries than in developing countries because birth rates are higher in industrial countries.
d. The ability of a country to invest in capital goods is tied to its ability to spend.
e. The size of the labor force is a function of the size of the youth in the population and the percentage of that population that is in the labor force.

Question 2

An increase in the price of good X due to a reduction in its supply will:
a. increase the total revenue of good X.
b. decrease the total revenue of good X.
c. increase the total revenue of goods that are substitutes for X.
d. increase the total revenue of goods that are complements for X.