(Solved by Humans)-What determines a nation's long run level of output? Why is

Question

1. What determines a nation?s long run level of output?? Why is this a fixed amount at a point in time in the long run?

1. What is MPK? MPL?? If a large-scale war resulted in massive destruction of physical facilities, but not loss of life, what would you expect to happen to MPK and MPL?? What would happen to real rental rates of capital and real wages of labor?

1. According to the neoclassical theory of distribution:? How is income distributed among factors of production?? How does technology that improves the production function affect real rental rates of capital and real wages of labor?

1. When consumer confidence increases we expect consumption to increase.? What happens to aggregate demand?? Use a goods market presentation to explain what is likely to happen to real interest rates.

1. Suppose the government must increase taxes (T) by an amount equal to an increase in government purchases (G) in order to maintain a balanced budget.? If G and T both increase, what would you expect to happen to the level of saving?? Real interest rates?? Use the Loanable Funds model to graph and explain.