Which of the following factors is not believed to affect output in the long run?

In a small open economy, describe what happens when an increase in wealth causes national saving to decline. Explain the impact on the real interest rate, saving, investment, net exports, and absorption in equilibrium

What will be an ideal response?

Assume that employment decreases by 3%. Holding all other factors constant, we know with certainty that which of the following will occur?

A) output will decrease by 3% B) output per capita will decrease by 3% C) output will decrease by less than 3% D) the capital labor ratio will decrease E) none of the above