A nation's standard of living:
a. will increase substantially over time even for a small increase in the growth rate.
b. will increase by the same amount as the increase in the growth rate
c. will decrease substantially over time even for a small increase in the growth rate.
d. will increase less than the amount of the increase in the growth rate.
a
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With discretionary policy making, fiscal and monetary policies are usually
A) immune to any lag times that might counter their effectiveness. B) immune to any political overtones. C) set according to pre-established standards that do not take into account any changes in the economy. D) undertaken in response to or anticipation of some change in the overall economy.
When drawn against the real interest rate, output supply increases if
A) current government expenses increase. B) future government expenses increase. C) current total factor productivity increases. D) the money supply increases.