Sustainable Growth

What is necessary for achieving permanent changes in real outputs?

• Shifts in long run aggregate supply

• Increased government spending

• Shifts in short run aggregate supply

• Higher consumer demand

Which of the following is NOT a factor that influences long run aggregate supply?

• Education and training

• Changes in consumer preferences

• Immigration policies

• Technological advancements

How can high levels of immigration affect the long run aggregate supply?

• By increasing government debt

• By increasing the quantity of labor

• By decreasing the quantity of labor

• By reducing technological advancements

What is the result of a shift in both long run and short run aggregate supply due to immigration?

• A new equilibrium with no output gap

• Higher inflation rates

• Increased unemployment

• Decreased economic growth

What can lead to an outward shift in aggregate demand?

• Decreased business investment

• Government investment

• Higher interest rates

• Increased consumer savings

How does investment affect long run aggregate supply in the long term?

• It reduces labor force

• It improves productivity

• It has no effect

• It decreases productivity

What is the ideal outcome of shifts in aggregate demand and long run aggregate supply?

• Higher price levels

• Sustainable economic growth

• Reduced real output

• Increased unemployment