Other Things Equal, If a Full-Employment Economy Reallocates a Substantial

question 48

Multiple Choice

Other things equal, if a full-employment economy reallocates a substantial quantity of its resources to capital goods, we would expect:

• A)present consumption to rise.
• B)future consumption to fall.
• C)a lower rate of growth of real GDP.
• D)labour productivity to rise.

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Definitions:

Electroencephalography

A non-invasive test that records electrical patterns in the brain, used to diagnose neurological disorders.

Electrical Activity

The movement of electrically charged particles, often referring to the activity within nerves or muscles in biological contexts.

Brain

The organ located in the head of an organism that coordinates its actions and sensory information by transmitting signals to and from different parts of its body, central to the nervous system.

MRI

Magnetic Resonance Imaging, a diagnostic technique that uses magnetic fields and radio waves to produce detailed images of the body's internal structures.