Suppose that an economy's labor productivity and total worker-hours each grew by 4 percent between year 1 and year 2. We could conclude that this economy's:
A. real GDP also increased by 4 percent.
B. real GDP remained constant.
C. production possibilities curve shifted outward.
D. capital stock increased by 4 percent.
C. production possibilities curve shifted outward.
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Suppose the demand for bananas increases. Explain how the price of bananas adjusts after the increase in demand
What will be an ideal response?
The consumer is in equilibrium when
A) MRT = MRS. B) Px/Py = MUx/MUy C) the budget line is tangent to the indifference curve at the bundle chosen. D) All of the above.
The most extensive indexing in the United States is in
A. interest payments on bonds or savings accounts. B. government transfer payments, including Social Security benefits. C. government contracts for military goods. D. escalator clauses in wage and salary contracts.
To reach the maximum money multiplier, it is assumed that
A. all loans get redeposited in a checkable account. B. commercial banks keep the amount of reserves equal to total bank deposits. C. loans are diverted into circulating currency. D. there is insufficient loan demand.