Fill in the blanks to make the following statements correct. a. In the long run, total output
Question:
Fill in the blanks to make the following statements correct.
a. In the long run, total output is determined only by __________. In the long run, aggregate demand
determines the __________ .
b. Permanent increases in real GDP are possible only if __________ is increasing.
c. Suppose illiteracy in Canada were eliminated, and the school dropout rate were reduced to zero. The effect would be a permanent __________ in productivity and \(\mathrm{a}(\mathrm{n})\) _________ in potential output.
d. A reduction in corporate income tax is likely to make _________ more attractive and thus shift the __________ curve to the right. The result is a(n) ____________ in the short-run level of real GDP. In the long run, the
greater rate of __________ by firms will lead to a greater
rate of growth of ___________ .
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