In an economy in which aggregate demand is stable and a period of sustained and significant productivity growth occurs, there will be
A. a shift of aggregate supply to the left.
B. a constant price level.
C. secular deflation.
D. secular inflation.
Answer: C
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Assume a closed economy with fixed taxes and the marginal propensity to consume is equal to 0.9. What is the government spending multiplier?
A) 10 B) 9 C) 5 D) 1
Using the supply and demand equations for wheat, solve for the equilibrium price and quantity as functions of I and r
What will be an ideal response?
If 40 rupees = $1, then one rupee = _____________.
Fill in the blank(s) with the appropriate word(s).
Refer to Table 6-4. Which of the following statements is correct?
A) The publisher's analysis is correct only if the demand is elastic. B) The publisher's analysis is correct only if the demand is perfectly inelastic. C) The publisher's analysis is correct only if the demand is unit elastic. D) The publisher's analysis is correct only if the demand is perfectly elastic.