1 An increase in productivity will cause the:

long-run aggregate supply curve to shift to the left.

aggregate demand curve to shift to the right.

short-run aggregate supply curve to shift to the right.

a movement along the short-run aggregate supply curve.

2 Human capital contributes to growth because it helps workers in the economy:

work longer hours

buy more goods.

All of these are true.

produce more with the same amount of physical capital.

3 The rate of growth in real GDP-per-capita is equal to:

% change in nominal GDP - inflation rate - % change in population

% change in nominal GDP + inflation rate - % change in population

the level of GDP / population

the level nominal GDP / price deflator * 100

4 If the government enacts expansionary fiscal policy, it:

increases taxes.

decreases its spending.

must want to increase short-run aggregate supply.

must want to increase real GDP.

If a country grows at an average rate of 7 percent per year (per capita), we can estimate it will double its:

real GDP per capita in 10 years.

growth rate in 10 years.

real GDP per capita in 7 years.

nominal GDP per capita in 10 years.