If we are currently at point T, we can get to point S in the long run
A. through economic growth over a period of years.
B. immediately by using resources more efficiently.
C. immediately by reducing the unemployment rate.
D. immediately through technological development.
A. through economic growth over a period of years.
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The downward slope of a demand curve
A) represents the law of demand. B) shows that as the price of a good rises, consumers increase the quantity they demand. C) indicates how the quantity demanded changes when incomes rise and the good is a normal good. D) indicates how demand changes when incomes rise and the good is a normal good. E) indicates how demand changes when the price changes and the good is a normal good.
If a person takes $100 from his/her piggy bank at home and puts it in his/her savings account, then M1 will ________ and M2 will ________
A) not change; increase B) decrease; not change C) decrease; increase D) increase; increase E) increase; decrease
Refer to Figure 3-1. A decrease in the expected future price of the product would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
Under which of the following conditions will the actual rate of unemployment tend to rise above the natural rate of unemployment?
a. Prices are stable and have been for the last four years. b. Inflation is 3 percent and was widely anticipated more than a year ago. c. Expansionary monetary policies lead to an unexpected increase in inflation from 3 percent to 7 percent. d. Restrictive monetary policies lead to an unexpected reduction in inflation from 6 percent to 2 percent.