Author Question: Which of these is most likely to reduce the potential output of an economy? a. An increase in the ... (Read 19 times)

justinmsk · **on:** Jun 30, 2018

Which of these is most likely to reduce the potential output of an economy?
a. An increase in the size of the labor force
b. A deterioration in the quality of the labor force
c. A decrease in the cost of using computers
d. A decrease in the price level
e. An increase in the price level

Question 2

According to the equation of exchange, if the amount of money in an economy multiplied by the velocity of money equals 800 million dollars, then this economy's:
a. real GDP equals 800 million.
b. nominal GDP equals 800 million.
c. real GDP equals 800 million times the price level.
d. nominal GDP equals 800 million times the price level.
e. price level equals 800.