For this question, assume that expectations of productivity are slow to adjust. Further assume that A had been increasing by 6% a year. Now suppose that A only increases by 2% in period t. This slowdown in productivity growth will cause
A) the PS relation to shift up more than the WS relation.
B) the WS relation to shift up more than the PS relation.
C) the natural rate of unemployment to fall.
D) the real wage to fall.
B
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Which activity of the Fed would tend to increase the nation's money supply?
A) Sales of government bonds B) Lowering the discount rate C) Raising the required reserve ratio D) None of the above.
The American colonies have a rich and deep history in international trade and immigration
Indicate whether the statement is true or false
If resale price maintenance leads to a shift in the market demand that exceeds the shift in the market supply, the quantity of the good sold will ________ and the manufacturer's profit will ________.
A) decrease; decrease B) decrease; increase C) increase; increase D) increase; decrease
If the price level in an economy rises and its output level decreases as it gravitates toward its potential GDP, then: a. a policy to manipulate the aggregate supply is being used
b. an active approach to correcting a recessionary gap is being used. c. an active approach to correcting an expansionary gap is being used. d. a passive approach to correcting a recessionary gap is being used. e. a passive approach to correcting an expansionary gap is being used.