Multiple Choice
Long- run increases in potential GDP would most likely be caused by a (an)
A) decrease in saving in the short run.
B) increased availability of key factors of production.
C) decrease in factor- utilization rates.
D) increases in the prices of factors of production such as wages or interest rates.
E) decrease in factor productivity.
Correct Answer:

Verified
Correct Answer:
Verified
Q5: When an economy experiences sustained growth in
Q6: Relatively small annual changes in factor productivity
Q7: Which of the following may increase real
Q8: Potential GDP is defined as the level
Q9: GDP can be represented by the equation:
Q11: In the long run, changes to real
Q12: Consider the equation GDP = F ×
Q13: An increase in potential GDP would most
Q14: The utilization rate for physical capital is
Q15: An estimate for the value of potential