Economists who believe that the recent rise in the average rate of productivity growth may be long-lasting claim that the above-normal economic growth in the United States between 1995 and 2009 was caused by:
A. increases in the rate of personal saving.
B. increased entrepreneurial activity, application of information technology, and global competition.
C. rising Federal budget surpluses that reduced real interest rates.
D. expansionary monetary policy.
Answer: B. increased entrepreneurial activity, application of information technology, and global competition.
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A. APS B. 1 ? MPC C. 1 ? MPS D. APC
In the Monetarist model, the long-run holds when
a. the money supply is constant. b. real wages are constant. c. output is constant. d. the expected price level equals the actual price level. e. none of the above.
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As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.