Growth in potential GDP depends on
a. the labor force growth rate, capital stock growth rate, and rate of technical progress.
b. government spending, growth in prices, and labor productivity.
c. cyclical fluctuations and growth in the capital stock.
d. growth in real GDP, nominal GDP, and the population.
a
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Suppose Sprite and 7-Up are considered by consumers to be substitutes. The likely economic impact of a decrease in the price of 7-Up is a:
a. movement up along the demand curve for Sprite. b. decrease in the supply of 7-Up c. rightward shift of the demand curve for Sprite. d. leftward shift of the demand curve for Sprite.
If there was no misperception effect, but there was a profit effect in the short run, then SRAS is ____ and LRAS is ____
a. upward sloping: vertical b. upward sloping; upward sloping c. vertical; vertical d. vertical; upward sloping