When interest rates fall in a given economy, it causes firms to borrow __________ funds used for purchasing capital goods. The result will be a(n) ___________ in the level of capital employed in the economy. In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis), this then causes ____________________ which makes the LRAS curve shift
____________ resulting in ______________________.
A) more; increase; the production function to shift upward; rightward; economic growth
B) less; decrease; the production function to shift downward; leftward; a shrinking economy
C) more; increase; a movement up along a given production function; rightward; economic growth
D) more; increase; a movement down along a given production function; leftward; a shrinking economy
A
Economics
You might also like to view...
In the figure above, suppose a subsidy is provided to private colleges. What amount of subsidy will ensure the efficient number of students?
A) $10,000 B) $25,000 C) $15,000 D) $5,000 E) $20,000
Economics
The values of real GDP and real GNP are almost the same for the United States
Indicate whether the statement is true or false
Economics