Since potential GDP is drawn as a vertical line, the amount that an economy is capable of producing is not affected by what?Multiple choice question.Government spending.The price level.Taxation.Foreign markets.

Which of the following will not increase a nation’s real GDP?Multiple Choicenumber of workerslabor productivitytechnological progressaverage price level

The upward sloping segment of the aggregate supply curve is where:Question 35Select one:a.substantial growth of real GDP can be produced without any increase in the price level (inflation).b.increased price levels result in a corresponding increased real output in the economy.c.price levels (inflation) can rise without increases in real output in the economy.d.is when all available labor resources are being used in the most efficient way possible.e.no growth of real GDP can be produced even with increases in the price levels.

Discuss the challenges associated with GDP as ameasure of economic activity.

GDP understates economic activity because:Group of answer choicesThe value of intermediate goods and services are not includedIt does not include non-market economic activityPublic goods and services are not includedIt uses market prices to value output

Which of the following is not true when the economy is on the vertical segment of the aggregate supply curve?Question 45Select one:a.all available labor resources are being used in the most efficient way possible.b.price levels (inflation) can rise without increases in real output in the economy.c.prices will increase without increases in the output level because the economy is producing at full capacity.d.substantial growth of real GDP can be produced without any increase in the price level (inflation).e.the economy is at full employment.