An increase in productivity will:
a. Increase aggregate demand
b. Increase aggregate supply
c. Decrease aggregate supply and aggregate demand
d. Increase aggregate supply and aggregate demand
b. Increase aggregate supply
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When output is below the full employment level of real GDP, the Federal Reserve banks should ________.
A. sell bonds B. raise the federal funds rate C. raise the discount rate D. lower the reserve ratio
Labor productivity measures
A) the growth of real output. B) real output per labor hour. C) the growth in the quantity of labor. D) the growth of per capita real GDP.
In the case of positive externalities, too many people consume and produce the good compared to what is desired by society
a. True b. False Indicate whether the statement is true or false
One way to eliminate the Tragedy of the Commons is to
a. increase law enforcement in public areas. b. limit access to the commons. c. increase access to the commons. d. decrease taxes.