Question

When drawn against the real interest rate, the output demand curve shifts to the right when...

When drawn against the real interest rate, the output demand curve shifts to the right when

Question 15 options:

1)

current capital stock decreases.

2)

current capital stock increases.

3)

real wage rate decreases.

4)

real wage rate increases.

5)

current capital stock and real wage rate increases.
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Answer #1

5. Current capital stock and real wage rate increases

Shift in output demand cruve to right means increase in investment and employment. Thus shift in output demand curve to the right indicates increase in capital stock and real wage rates

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