Equilibrium output, and potential output are the same thing.

Equilibrium output, and potential output are the same thing.

True

False

Aggregate Demand curves slope down and to the right because of:

Money Wealth Effect

Multiplier Effect

All of the Above

International Effect

Interest Rate Effect

There are other things in an economy that can OVERRIDE the shift factorsin an Aggregate supply and demand graph.

True

False

Macroeconomic policy is deliberately trying to shift which curve?

Short Run Aggregate Supply

Aggregate demand

Demand

Long Run Aggregate Supply

When we have a recessionary gap that means that we are producing

Unicorns

Below our potential output

At out potential output

Above our potential output

Specialization and division of labor are two ways to increase productivity.

True

False

Which of the following is NOT a potential source of growth?

Taxation

New Resources

Tech Advancement

Investment

Match the Model with its believed source of growth

Classical Growth Model

-Entrepreneurship, new resources, capital accumulation, increase in labor, technology

New Growth Model

-Entrepreneurship, new resources, capital accumulation, increase in labor, technology

According to growth theories, we should increase savings to see growth in the long run?

True

False

Humans are NOT capital.

True

False