What are the macroeconomic implications from the recent increase in trend rate productivity?
What will be an ideal response?
Higher productivity growth permits the economy to achieve a faster rate of economic growth. This notion would be illustrated by a farther shift outward of the production possibilities curve. This faster rate of growth is possible without inflation because of greater productivity gains and increasing returns to scale for more businesses.
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Economic scarcity arises from
a. inefficient production. b. limited resources and limitless wants. c. limited wants and limitless resources. d. exploration.
If the long-term labor force growth rate is 1.2% and the long-term productivity growth rate is 2.4%, then the
A. spending multiplier is 2. B. potential growth rate is 3.6%. C. real GDP per capita growth rate is 0.5%. D. short-term growth rate is 1.2%.
Air pollution from burning fossil fuels causes damages to crops and public health. This is an example of
a. a market failure caused by an externality. b. a market failure caused by market power. c. a market failure caused by equality. d. There is no market failure in this case.
A dominant strategy:
A. is always the same for all players of a game. B. exists in every game. C. is the best one to follow no matter what strategy other players choose. D. awards the highest achievable payoff in a game.