Which of the following is a major goal of short-run macroeconomic policy?
Move toward the production possibilities curve
A short-run increase in capacity utilization:
Moves the economy to a point closer to its existing production possibilities curve.
A sustained increase in total output is possible only if the aggregate:
Supply curve shifts to the right.
Long-run economic growth can be achieved with:
A rightward shift in the long-run aggregate supply curve.
Which of the following also occurs as the production possibilities curve shifts outward?
Aggregate supply increases
The process of economic growth is:
Cumulative, whereby gains made in one year accumulate in future years.
Which measurement is most useful for comparing the standard of living in different countries?
GDP per capita
For much of the 1970s and 1980s, the average yearly change in productivity:
Was significantly less than the average yearly change in productivity for 1995-2000.
In recent decades, a primary source of growth in U.S. output has been:
Increased productivity per worker.
Improvements in output per worker:
Depend in large part on increases in the quantity of capital equipment and the quality of capital equipment.
The "new growth theory" of economic growth emphasizes the importance of:
Investing in ideas.
Long-run economic growth can be illustrated in Figure 17.1 by a:
Shift outward of the production-possibilities curve.
Expansionary monetary and fiscal policies are designed to move the economy in Figure 17.1, in the short run, from point:
A to point D.
Monetary and fiscal policies that encourage the long-run growth of net investment and increase labor productivity are designed to move the economy in Figure 17.1 from point:
D to point C.