There is no cost of using your own savings in your business

The per capita output of an economy is likely to increase if: a. the number of workers in the economy grows faster than its population

b. the population of the country grows faster than its labor force. c. the government increases the tax rates. d. the government controls the number of illegal immigrant workers in the economy. e. the government manages the foreign investment in the economy.

Which of the following is an incorrect statement?

a. Macroeconomic equilibrium occurs at the intersection of the aggregate demand and aggregate supply curves. b. The aggregate supply curve indicates a positive relationship between the price level and GDP. c. Other things equal, a downward shift of the aggregate demand curve implies that the economy is entering a contractionary phase. d. Aggregate demand and aggregate supply determine the equilibrium price and quantity of any given good. e. The aggregate demand curve indicates a negative relationship between the price level and GDP.