Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 

Keynes was especially interested in explaining movements of ________ because he wanted to explain why the Great Depression had occurred and how government policy could be used to increase ________ in a similar economic situation

A) aggregate output; wages B) aggregate output; employment C) wage rates; wages D) wage rates; employment

A decrease in the capital stock would be expected to

a. decrease the labor force. b. increase the level of output. c. decrease real GDP per capita. d. increase real GDP per capita.