Refer to the above diagram. If price is reduced from P1 to P2, total revenue will:

An above-full-employment equilibrium occurs when

A) aggregate demand decreases while neither the short-run nor long-run aggregate supply changes. B) short-run aggregate supply decreases while neither aggregate demand nor long-run aggregate supply changes. C) the equilibrium level of real GDP is greater than potential GDP. D) the equilibrium level of real GDP is less than potential GDP.

Investment diversion is considered an obstacle to economic growth because:

a. it would be better to increase the mortality rate of the country, and thus have a higher per capita real GDP. b. investment in health care is highly appreciated by the international community. c. capital infrastructure automatically eliminates population problems. d. the investments in health care affect only the poorest, the least productive inhabitants of a country. e. there is no way for a country to build its industries without an increase in investment on infrastructure.