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View Window Share Help Untitled-Edited Sections Text Box Shapes Table Charts Comment Inspector Media Co Outline 22. In the long run, the output of an economy A does not grow. B. grows at a positive rate. C. depends on aggregate demand. D. is equal to full-employment output. E. depends on the price level. When the production function shifts upward, we can expect the marginal product of capital to a. increase b. decrease. c. remain constant. d. double in value. e. turn negative. 28. An increasing number of firms decide to install tablets and computers so that customers are able to order and pay on their own. This can be expected to investment spending by the firms. At the same time we can expect the unemployment rate to and consumption spending to--.- Overall the effect on gross domestic product (GDP) is a. have no effect on, increase; decrease; negative b. increase; increase; decrease; negative c. increase; increase; increase; positive d. increase; increase, decrease; uncertain e. decrease, increase; decrease, negative

Explanation / Answer

Ans:

22) Option D

is equal to full emploment output

In the long run there is no change in the price level and in the  long run the economy moves toward full employment output.

26) Option A

Increases

There is a increases in the marginal product of capital when the production function shifts upward. The marginal productivity of capital will increase at every level of output.

28) Option C

Increase,Increase,Increase,Positive.

Installing computers and tablets increases the investment spending and which will lead to increase in unemployment.The increase in the performance will have a positive effect on the gross domestic product.   

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