In Figure 5.1, during the period between the early 1970s and 1980, real GDP grew at a faster rate than nominal GDP. This is an indication that
A. Average price levels increased.
B. Production increased at a slower rate than average price increased.
C. Production increased at a faster rate than average price increased.
D. Average price levels decreased.
Answer: D
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Capital saving nonneutral technical progress allows a firm to
A) produce more output with the same inputs. B) use less capital and the same amount of other inputs to produce the same level of output. C) use more capital to produce the same level of output. D) use less capital and more of other inputs to produce the same level of output.
When consumers lose confidence in the future of their economy, they begin to consume more, and this causes the aggregate demand curve to shift to the right
a. True b. False Indicate whether the statement is true or false