57. All else equal, which of the following would tend to cause GDP per person to rise? a. policies to reduce imports b. high population growth c. investment in human capital d. rapid growth in the number of workers 58. Suppose that the saving rate in Canada increases, and firms use the increased saving to invest. What will happen to long-run aggregate supply? a. The LRAS will not shift, but the economy moves along the LRAS curve to a higher price level. b. It will decrease. C. The LRAS will not shift, but the economy moves along the LRAS curve to a lower price level. d. It will increase.
Answer
a) “C”
INvestment in human capital in the market will lead to GDP per
person to rise in the market.
b) “D”
It will increase as the capital in the market will rise in the
market.
