In the Long-Run Equilibrium, an Increase in the Quantity of Capital

question 356

Multiple Choice

In the long-run equilibrium, an increase in the quantity of capital leads to

• A) a decrease in the equilibrium price level, but no change in equilibrium real GDP.
• B) a decrease in the equilibrium price level and an increase in equilibrium real GDP.
• C) no change in the equilibrium price level, but an increase in equilibrium real GDP.
• D) an increase in the equilibrium price level and an increase in equilibrium real GDP.

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Definitions:

Flynn Effect

The observed rise over time in standardized intelligence test scores, theorized to reflect a variety of environmental factors.

Average Score

The mean value obtained by dividing the sum of all scores in a set by the number of scores, often used to measure central tendency in data.

IQ Scores

A numerical assessment, derived from standardized tests, that measures a person's intelligence level compared to others.

Environmental Factors

Elements within the surrounding environment that can influence living organisms, encompassing physical, chemical, and biological factors.