Assume a country increases the production of capital goods (& decreases consumer goods). This will: O increase the nation's capacity to produce. O lead to more rapid economic growth. O do all of the above. O eventually lead to an outward shift of the production possibilities curve.

A32. With reference to the economy, Uniform Recall Period, Mixed Recall Period and Modified Mixed Recall Period are methods used to measure (a) Poverty Line (b) Extent of Human development (c) Impact of industries on climate change (d) Working age population ratio

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10 co Interest Rate (%) N B Investment Demand O E 0 $30 60 90 120 150 Investment ($) Price Level 0 AS Q₁ Real GDP ($) AD, (I=120) -AD₂ (I=90) *AD, (I=60) Refer to the above graphs, in which the numbers in parentheses near the AD₁, AD2, and AD3 labels indicate the level of investment spending associated with each curve, respectively. All numbers are in billions of dollars. The interest rate and the level of investment spending in the economy are at point C on the investment demand curve. To achieve the long-run goal of a noninflationary full-employment output Qf in the economy, the Fed should: decrease aggregate demand by increasing the interest rate. make no change in the interest rate. increase aggregate demand by decreasing the interest rate. increase aggregate demand by increasing the interest rate.