When Future Total Factor Productivity Is Expected to Increase

question 59

Multiple Choice

When future total factor productivity is expected to increase,

• A) investment demand decreases and output demand decreases.
• B) investment demand increases and output demand increases.
• C) current labour demand increases and output supply increases.
• D) investment demand increases and output supply increases.
• E) investment demand increases and output supply decreases.

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Definitions:

Net Exports

The value of a country's total exports minus its total imports; a positive value indicates a trade surplus, while a negative value indicates a trade deficit.

Gross Savings

The total amount of savings generated within an economy, including personal, business, and government savings, before accounting for depreciation.

Net Investment

The total spending on new capital minus the replacement of depreciated capital, indicating the actual increase in a company's or nation's capital stock.

GDP

GDP, or Gross Domestic Product, measures the total value of all goods and services produced within a country's borders over a specific time period, reflecting the size and health of its economy.