1. Suppose the labour force in an economy is 100, its long run employment rate is 95%...
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1. Suppose the labour force in an economy is 100, its long run employment rate is 95% and its labour productivity (GDP/E) is 100. If current GDP is 8500, the economy is in long and short run equilibrium.
2. Neoclassical growth theory implies that a doubling of the labour force leads to a doubling of aggregate output.
3. If an economy experiences an improvement in the average level of it production technologies, then, in the long run, both GDP and GDP per worker will increase.
4. Because it is no longer backed by the potential for conversion to gold, modern Canadian fiat currency is no longer able to serve as a form of money.
Related Book For
Principles of Macroeconomics
ISBN: 978-0134078809
12th edition
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
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