In the long run, a reduction in productivity will cause
A) an increase in the capital—labor ratio and an increase in consumption per worker.
B) an increase in the capital—labor ratio and a decrease in consumption per worker.
C) a decrease in the capital—labor ratio and a decrease in consumption per worker.
D) a decrease in the capital—labor ratio and an increase in consumption per worker.
C
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The investment demand curve is drawn with the ________ on the horizontal axis and the ________ on the vertical axis.
A. expected rate of return and interest rate; amount of investment B. amount of investment; disposable income C. amount of investment; expected rate of return and interest rate D. disposable income; amount of investment
When the IMF requires a country to implement policy changes in order to receive a loan
A) it is called IMF conditionality. B) most countries reject the loans. C) it means that the IMF will lower that country's quota. D) the IMF must be using one of its financing facilities.
Suppose A and B are substitute goods. Other things being equal, the demand curve for A will shift to the right when the price of B goes down
a. True b. False Indicate whether the statement is true or false
An abnormally large grain crop due to highly favorable weather conditions in the Midwest is an example of
a. a technological improvement that will increase long-run aggregate supply. b. a supply shock that will increase short-run aggregate supply. c. an unexpected development that will reduce the natural rate of unemployment. d. an unexpected development that will lead to excess supply and widespread unemployment.