Which of the Following Will NOT Cause an Increase in Aggregate

question 37

Multiple Choice

Which of the following will NOT cause an increase in aggregate output (Y) in the long run?

• A)an increase in N
• B)an increase in K
• C)an increase in technology
• D)a reduction in the saving rate
• E)none of the above

---

Definitions:

Present Value

The present value is the present-day valuation of a future money sum or cash flow series, determined by a given rate of return.

Simple Interest

A method of calculating the interest charge on a loan or financial product based on the original principal amount and the rate of interest over a specific time period, without compounding.

Interest on Interest

Earnings from reinvesting the interest received from an investment, leading to exponential growth over time.

Annually

Concerning an event that takes place annually.