Refer to Figure 22-4. Suppose the per-worker production function ...

[melly21297]

Refer to Figure 22-4. Suppose the per-worker production function in the figure above represents the production function for the U.S. economy.
 
  If the United States decided to cut its support of university research in half, this would cause a movement from
  A) B to D. B) B to E. C) B to C. D) B to A.

Question 2

What is the main reason for changes in GDP in the short run?
 
  What will be an ideal response?

[rleezy04]

Answer to Question 1

B

Answer to Question 2

The main reason for changes in GDP in the short run is changes in the level of aggregate expenditure.

[melly21297]

Thank you

[rleezy04]

Happy to help you