Question : 41) Consider a small economy where factor supply 1000 units, : 1384423

41) Consider a small economy where factor supply is 1000 units, the factor utilization rate is 0.9 and a simple measure of productivity (GDP per factor employed) is $80. This economy’s GDP is

A) $7200.

B) $72 000.

C) $80 000.

D) $88 888.

E) $90 000.

42) Consider a small economy where factor supply is 4000 units, the factor utilization rate is 0.8 and a simple measure of productivity (GDP per factor employed) is $50. This economy’s GDP is

A) $40 000.

B) $160 000.

C) $200 000.

D) $320 000.

E) $500 000.

43) Consider an economy where factor supply is 2.5 million units, the factor utilization rate is 0.85 and a simple measure of productivity (GDP per factor employed) is $200. This economy’s GDP is

A) $2.125 million.

B) $200 million.

C) $425 million.

D) $500 million.

E) $525 million.

44) Consider a small economy where GDP is $100 000. Factor supply is 1000 units and the factor utilization rate is 0.8. What is a simple measure of productivity (GDP per factor employed) in this economy?

A) $125

B) $800

C) $100

D) $125 000

E) $1000

45) Consider an economy in long-run equilibrium where factor supply is 2.5 million units, the factor utilization rate is 0.85 and a simple measure of productivity (GDP per factor employed) is $200. Now suppose that, other things being equal, the productivity measure rises to $210. The effect of this change will be

A) an inflationary gap caused by simultaneous rightward shifts of the aggregate demand and aggregate supply curves.

B) a rightward shift of the aggregate supply curve, and an adjustment back to Y*.

C) a rightward shift of the aggregate demand curve due to the increased wealth of the private sector.

D) an increase in this economy’s potential output, and an adjustment back to its original level after factor prices have adjusted.

E) an increase in this economy’s potential output in the long run.

46) The average rate of labour productivity growth in Canada over the past few decades has been about

A) 15% per year.

B) 25% per year.

C) 0.2% per year.

D) 1.3% per year.

E) 5% per year.

47) In Canada, the labour-force participation rate is about

A) 66%.

B) 76%.

C) 86%.

D) 90%.

E) 92%.

48) The utilization rate for physical capital is called the

A) physical utilization rate.

B) investment utilization rate.

C) capacity utilization rate.

D) stock of capital utilization rate.

E) normal utilization rate.

49) In the short run, aggregate demand and aggregate supply shocks cause output gaps, which in turn, cause fluctuations in

A) the factor utilization rate.

B) the normal factor utilization rate.

C) the natural rate of unemployment.

D) factor supply.

E) productivity.

50) Consider the equation GDP = F × (FE/F) × (GDP/FE). If the economy enters a recessionary gap because of a negative aggregate demand shock, the equation changes in which of the following ways?

A) The value of F falls as the rate of unemployment rises.

B) The value of FE/F rises as the rate of unemployment rises.

C) The value of GDP/FE rises as workers are laid off and equipment is used less intensively.

D) The value of FE/F falls as workers are laid off and equipment is used less intensively.

E) There are no short-run changes in this case.