Describe the trend in the rate of productivity from 1973 to 1995 and then from 1995 to 2012.
What will be an ideal response?
Productivity growth was 2.4 percent annually from 1995–2012 compared with 1.5 percent annually from 1973–1995. This development caused some economists to think that this recent increase in trend rate productivity had emerged based on improvements in technology and global competition.
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When a nation removes restrictions on imported products we will see
A. an increase in consumer surplus and a decrease in producer surplus. B. a decrease in consumer surplus and an increase in producer surplus. C. an increase in consumer surplus and an increase in producer surplus. D. a decrease in consumer surplus and an decrease in producer surplus.
The IS curve will shift down and to the left when
A) desired saving declines. B) government purchases increase. C) consumption increases. D) the expected future marginal product of capital declines.
One of the primary objections to the new classical model is that ________
A) firms could easily get information about price movements and so would not be fooled for very long B) price is negatively related to quantity demanded, but positively related to quantity supplied C) business cycles are relatively brief in duration D) it failed to incorporate rational expectations into its presentation
The production of 1,000 shirts leaves an apparel manufacturer with a capacity to produce no more than 1,100 trousers during a month. This implies:
a. the production level is inefficient. b. that if the production of trousers is reduced, that of shirts will also decline. c. that a reallocation of resources may make previously unachievable outcomes achievable. d. the production level is efficient.