Question Details

Some economists believe the economy is able to grow without 



1. In the long run, the rate of growth of real wages is approximately equal to the rate of 
a) inflation b) growth of labor productivity 
c) growth of labor productivity plus inflation 
d) growth of labor productivity minus inflation 
2. An expansionary monetary policy and contractionary fiscal policy mix would increase future economic growth if it promoted 
a) low interest rates, which encourage business investment 
b) high interest rates, which encourage people to save and invest 
c) low levels of personal savings to finance present consumption 
d) high levels of personal savings to finance future consumption 
3. The limit of an economy's total productive capacity at any given time is set by 
a) the amount of money in circulation b) business demand for goods and services 
c) the level of government spending and taxation 
d) the quantity and quality of its productive resources 
4. National saving is 
a) the same as private saving b) private saving plus foreign financing 
c) private saving less the government deficit 
d) private saving plus foreign financing less the government deficit 
5. "Some economists believe the economy is able to grow without ________ because of strong improvements in ________brought about by huge investments in new technology by business." The blanks are best filled in with 
a) inflation; productivity b) inflation; aggregate demand 
c) unemployment; productivity d) unemployment; aggregate demand




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