Suppose the economy is producing at the natural rate of output
Assuming a fixed natural rate of output and everything else held constant, the development of a new, more productive technology will cause ________ in the unemployment rate in the short run and ________ in inflation in the short run. A) an increase; an increase
B) a decrease; a decrease
C) a decrease; an increase
D) no change; no change
B
You might also like to view...
When households and firms sell financial assets, such as government securities, the
A) market price of the securities increases. B) nominal interest rate falls. C) supply of money curve shifts leftward. D) demand for money curve shifts leftward. E) nominal interest rate rises.
Examples of assets that are included in household wealth would be
A) stocks, credit cards, and savings accounts. B) stocks, bonds, and savings accounts. C) stocks, bonds, and mortgages. D) stocks, loans owed, and savings accounts.
Both a perfectly competitive firm and a monopolist:
a. always earn an economic profit. b. maximize profit by setting marginal cost equal to marginal revenue. c. maximize profit by setting marginal cost equal to average total cost. d. are price takers.
________ is the yardstick used to compare living standards across nations
a. Investment level b. Output per capita c. Net export d. Interest rate