ECON 1500 Exam 2 Questions and
Answers (Top Grade Assured) 2026
Update
The focus of the Classical growth model is - Correct Answers ✅aggregate
demand
interest rates
**investment
technology
The focus of the New Growth model is - Correct Answers ✅-aggregate
demand
-interest rates
-investment
**technology
Which of the following factors will not shift the long-run aggregate supply
curve to the right? - Correct Answers ✅**An increase in the labor force
participation rate
-Better institutional arrangements
-An increase in the price level
-An improvement in technology
Which of the following policies will likely contribute to strong economic
growth? - Correct Answers ✅-Low taxes on the returns to saving
-Quality research and teaching universities
-Strong Patent law which encourages innovation
**All of the above are correct
In the long run, what determines the level of output is the AS-AD model? -
Correct Answers ✅-SRAS
, ECON 1500 Exam 2 Questions and
Answers (Top Grade Assured) 2026
Update
-AD
**LAS
-Trump with a little help from Adam Shiff
All of the following are important sources of growth except - Correct
Answers ✅-Competitive markets
-Enforcement of property rights
**Low labor force participation rates
-Capital accumulation
Which will increase the rate of capital accumulation? - Correct Answers
✅Lower levels of investment
Higher levels of investment
Higher levels of saving
**Both B and C are correct
Which institutional arrangement is more consistent with high GDP per capita?
- Correct Answers ✅-Socialism
-Restrictions on international trade
-Government imposed price controls
**Markets, specialization and trade
We can show economic growth in terms of the production possibility curve
by: - Correct Answers ✅-movement along the production possibility curve
-shifting from a point inside the curve to a point on the production possibility
curve
**shifting the production possibility curve outward
Answers (Top Grade Assured) 2026
Update
The focus of the Classical growth model is - Correct Answers ✅aggregate
demand
interest rates
**investment
technology
The focus of the New Growth model is - Correct Answers ✅-aggregate
demand
-interest rates
-investment
**technology
Which of the following factors will not shift the long-run aggregate supply
curve to the right? - Correct Answers ✅**An increase in the labor force
participation rate
-Better institutional arrangements
-An increase in the price level
-An improvement in technology
Which of the following policies will likely contribute to strong economic
growth? - Correct Answers ✅-Low taxes on the returns to saving
-Quality research and teaching universities
-Strong Patent law which encourages innovation
**All of the above are correct
In the long run, what determines the level of output is the AS-AD model? -
Correct Answers ✅-SRAS
, ECON 1500 Exam 2 Questions and
Answers (Top Grade Assured) 2026
Update
-AD
**LAS
-Trump with a little help from Adam Shiff
All of the following are important sources of growth except - Correct
Answers ✅-Competitive markets
-Enforcement of property rights
**Low labor force participation rates
-Capital accumulation
Which will increase the rate of capital accumulation? - Correct Answers
✅Lower levels of investment
Higher levels of investment
Higher levels of saving
**Both B and C are correct
Which institutional arrangement is more consistent with high GDP per capita?
- Correct Answers ✅-Socialism
-Restrictions on international trade
-Government imposed price controls
**Markets, specialization and trade
We can show economic growth in terms of the production possibility curve
by: - Correct Answers ✅-movement along the production possibility curve
-shifting from a point inside the curve to a point on the production possibility
curve
**shifting the production possibility curve outward
