An increase in total factor productivity shifts the PPF
A) upward, but does not change its slope.
B) upward, and also changes its slope.
C) downward, but does not change its slope.
D) downward, and also changes its slope.
B
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A decrease in investment leads to ________ in aggregate demand and ________ in real GDP
A) no change; a decrease B) a decrease; an increase C) an increase; an increase D) a decrease; a decrease E) an increase; a decrease
Everything else held constant, an increase in net taxes ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply
In the Solow model, if saving per worker initially exceeds investment per worker,
A) the economy will experience inflation. B) the capital—labor ratio will increase. C) investment per worker will decline. D) saving per worker will decline.
In the United States, for a $1 fall in state government revenue, the federal government increases transfers by:
A) $2. B) $1. C) 30 cents. D) 15 cents.