Labor productivity is most likely to increase as a result of a (n):
A. Increase in physical capital.
B. Decrease in net immigration.
C. Increase in the labor force participation rate.
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If money neutrality holds, the effect of an increase in the money supply is:
A. Higher prices.
B. Higher output.
C. Lower unemployment.
Purchases of securities in the open market by the monetary authorities are least likely to increase:
A. Excess reserves.
B. Cash in investor accounts.
C. The interbank lending rate.
For an economy that is initially at full-employment real GDP, an increase in aggregate demand will most likely have what effects on the price level and real GDP in the short run?
A. Both will increase in the short run.
B. Neither will increase in the short run.
C. Only one will increase in the short run.
When GDP is calculated by the sum-of-value-added method, what is the value of a manufactured product in GDP?
A. The sum of the products value at each stage of production and distribution.
B. The sum of the increases in the products value at each stage of production and distribution.
C. The products retail price less the value added at each stage of production and distribution.