The Cobb-Douglas production function takes the form (for 0<a<1):

Constant returns to scale refers to:

When the Reserve Bank responds to higher inflation by raising real interest rates, consumption and investment spending:

For a given nominal exchange rate and foreign price level, a decrease in the domestic price level _____ the real exchange rate.

Suppose the aggregate demand curve in an economy is Y=10 000-10 000p, current inflation (p) equals 0.06 (6%), and potential output (Y*) equals 9400. If, starting from long-run equilibrium, an inflation shock raises inflation to 0.07, in the short run, output will equal ____ and, in the long run, output will equal _____.

In Macroland, 500 000 of the 1 million people in the country are employed. Average labour productivity in Macroland is $20 000 per worker. Real GDP per person in Macroland totals:

The decomposition of an economy's growth experience into contributions from different factors of production and technology refers to:

If average labour productivity increases, real GDP per person:

Starting from long-run equilibrium, a large increase in government purchases will result in a  _____ gap in the short run and ____ inflation and ____ output in the long run.

If the aggregate demand curve in an economy is Y=20 000-20 000p, current inflation (p) equals 0.06 (6%), and potential output (Y*) equals 19 200, then, in the short run, equilibrium output equals ____ and, in the long run, the inflation rate equals ___ %.