Consider the Basic AD/AS Model in the Short Run

question 51

Multiple Choice

Consider the basic AD/AS model in the short run. When there is a change in autonomous desired expenditure, the simple multiplier is equal to the

• A)ratio of the vertical shift of the AD curve to the change in autonomous expenditure.
• B)product of the horizontal shift of the AD curve times the change in autonomous expenditure.
• C)product of the vertical movement along the AD curve times the change in autonomous expenditure.
• D)ratio of the vertical movement along the AD curve to the change in autonomous expenditure.
• E)ratio of the horizontal shift of the AD curve to the change in autonomous expenditure.

Grasp the Malthusian dilemma and its implications on food production and population growth.

Analyze the impact of technological improvements on productivity and understand the potential for diminishing returns in technology applications.

Interpret production functions and calculate marginal and average product of labor.

Evaluate the factors contributing to labor productivity differences among economies.

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