Question

Improving productivity will� result in an increase in the aggregate supply curve.

TRUE or FALSE

The United States Public Debt is currently over 24 trillion dollars.

True

False

The majority of the Public Debt is owed to Americans and American interests.

True

False

What is The GDP level where GDP is equal to total spend. (Equilibrium GDP, NonEquilibrium GDP, Real GDP, or Nominal GDP)

Answer 1

1) The given statement is true

Improving the productivity will cause an increase in the aggregate supply curve. The aggregate supply curve gives the relation between the price levels and the quantity of the output that the firms are willing to provide. With the improvements in the productivity in the economy, the supply would increase and this causes the aggregate supply curve to shift towards the right and thus causes an increase in the aggregate supply curve.

2) The given statement is false.

The current public debt of the US state government is $22 trillion which is well below $24 trillion. The statistics states that this has been the highest recorded value of public debt and it is expected to rise further. The national debt is about 80% of the GDP as if now and is expected to be about more than 90% of the GDP by the end of 2020.

3) The given statement is true

The official statistics shows that the Americans own about more than 70% of the national debt of the state. It is spread across the domestic government, institutions, investors and the Federal reserve. Thus, only less than 30% of the public debt of the state of America is owned by the foreign entities.

4) The correct option is Equilibrium GDP

The equilibrium GDP represents the output of such an economy and the level of output at which the total amount of spending is equal to the GDP of the economy

· The real-GDP is an inflation adjusted measure that reflects the value of all good and services that are produced by the economy in a given year

· The nominal GDP is a representative of the current value of goods and services which measures the monetary value of the goods and services that are produced in a country.