Other things equal, an improvement in productivity will:
A. shift the aggregate demand curve to the left.
B. shift the aggregate supply curve to the left.
C. shift the aggregate supply curve to the right.
D. increase the price level.
C. shift the aggregate supply curve to the right.
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Total utility is maximized whenever
A. marginal utility is zero. B. marginal utility is increasing. C. marginal utility is decreasing. D. marginal utility is constant.
Refer to Figure 2-1. ________ is (are) inefficient in that not all resources are being used
A) Point A B) Point B C) Point C D) Points A and C
A recent development in the RBC literature is the growing admission of the possible importance of
A) nominal variables. B) real demand shocks. C) favorable supply shocks. D) changes in monetary policy. E) technological changes.
When various firms fail because their output is not demanded by society, workers may suffer
a. structural unemployment. b. frictional unemployment. c. seasonal unemployment. d. cyclical unemployment.