Changes in the capital stock are caused by changes in ________
A) the quantity of labor
B) depreciation and investment
C) depreciation and entrepreneurship
D) depreciation and the quantity of labor
B
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At the current interest rate, the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded. Therefore
A) equilibrium will not be achieved until something shifts the supply of loanable funds curve rightward. B) the real interest rate is above the equilibrium level. C) the real interest rate is below the equilibrium level. D) equilibrium will not be achieved until something shifts the supply of loanable funds curve leftward. E) equilibrium will not be achieved until something shifts the demand for loanable funds curve rightward.
Fiscal policies that move the economy toward potential GDP without a change in policy are called
A) spending stabilizers. B) economic stabilizers. C) GDP stabilizers. D) routine stabilizers. E) automatic stabilizers.