Studied by 0 people
significant technological improvement
A(n) ________ will enable the economy to increase the level of both actual and potential output.
full employment output
In an open economy, ________ is divided among four uses: consumption, investment, government purchases, and net exports (exports- imports): Y= C + I + G + NX.
Principle of Diminishing Returns
________:** Suppose we produce output with two or more inputs and we increase on input while holding the other inputs fixed.
Full employment
________ means an economy has frictional and structural unemployment but no cyclical unemployment.
positive technological shock
A(n) ________ would increase labor demand and result in both higher wages and higher employment.
Principle of Opportunity Cost
________:** The opportunity cost of something is what you sacrifice to get it.
total level of output
It explains how the ________ or GDP in the economy is generated from the factors of production.
Capital
________ is one of the key factors of production.
full employment model
The ________ is used to analyze the long- term issues, such as the role taxes play in determining the level of GDP and how immigration affects wages and GDP.
F
________= the relationship between the factors of production and output.
stock of capital
K= the ________.
