Other things equal, an increase in productivity will:
A. reduce aggregate supply and increase real output.
B. reduce both the interest rate and the international value of the dollar.
C. increase both aggregate supply and real output.
D. increase net exports, increase investment, and reduce aggregate demand.
C. increase both aggregate supply and real output.
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Which of the following is true of the marginal revenue curve of a monopolist? a. It always lies below the demand curve. b. It always lies above the demand curve. c. It has a slope of 2
d. It has a slope of 1.
Excess supply in an unregulated market will cause the price of a product to fall
Indicate whether the statement is true or false
To be binding, a price floor must be set below the equilibrium price
a. True b. False Indicate whether the statement is true or false
________________ fiscal policy decreases the level of aggregate demand, either through cuts in government spending or increases in taxes.
a. Expansionary b. Contractionary c. Lenient d. Strict