If subsidies for research and development on new technologies lead to an increase in the average productivity of labor, what will most likely happen to real GDP per capita and long-run aggregate supply (LRAS) for a given population size? A B Real GDP per capita will decrease, and LRAS will increase. Real GDP per capita will decrease, and LRAS will decrease. Real GDP per capita will increase,

If subsidies for research and development on new technologies lead to an increase in the average productivity of labor, what will most likely happen to real GDP per capita and long-run aggregate supply (LRAS) for a given population size? A B Real GDP per capita will decrease, and LRAS will increase. Real GDP per capita will decrease, and LRAS will decrease. Real GDP per capita will increase,

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If subsidies for research and development on new
technologies lead to an increase in the average
productivity of labor, what will most likely happen to
real GDP per capita and long-run aggregate supply
(LRAS) for a given population size?
A
B
C
D
E
Real GDP per capita will decrease,
and LRAS will increase.
Real GDP per capita will decrease,
and LRAS will decrease.
Real GDP per capita will increase,
and LRAS will increase.
Real GDP per capita will increase,
and LRAS will decrease.
Real GDP per capita will decrease,
and LRAS will not change.
T

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