When economic growth (a gradual shift of LRAS to the right) expands the production possibilities of an economy,
a. a higher rate of real output can be achieved in the short run, but it cannot be sustained in the long run.
b. a larger output can be attained even if unemployment remains at its natural rate.
c. the general level of prices will rise if the money supply is held constant.
d. the equilibrium in the goods and services market will be disrupted.
B
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The average annual growth rates of labor productivity from 1948 to 1973 were ________ the average rates over the period from 1973 to 1995.
A. more rapid in the U.S., but slower in other industrialized countries than B. about the same as C. more rapid than D. slower than
In 2002, government expenditures as a percentage of GDP were lowest for which country?
a. Sweden b. United States c. Germany d. France
(Consider This) Suppose that salsa manufacturers sell 2 million bottles at $3.50 in one year and 3 million bottles at $3 in the next year. Based on this information, we can conclude that the:
A. law of supply has been violated. B. law of demand has been violated. C. demand for salsa has increased. D. supply of salsa has increased.
The limitations on purely voluntary exchange created by positive externalities