What factors explain the extended period of economic growth 1992-2000?
The prosperity was exceptional and surprising. High rates of economic growth, low rates of unemployment and inflation. The explanation involves factors that affected both aggregate demand and aggregate supply. The diffusion of computer technology in the 1990s served to increase labor productivity, shifting the aggregate supply curve to the right thereby lowering the price level and increasing real GDP. The stock market boom that accompanied the GDP growth resulted in people believing that had more real wealth and they reacted by shifting the aggregate demand curve to the right. This, as well, increased real GDP.
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Suppose a country operates on its production possibility frontier when it produces 1000 books and 1000 tables. The combination of ________ reflects ________
A) 500 books and 1000 tables; an inefficient but attainable point B) 1000 books and 500 tables; an efficient point C) 1000 books and 1000 tables; a free lunch D) 500 books and 500 tables; an attainable and efficient point E) 1000 books and 1500 tables; a free lunch
Which of the following economic systems requires some form of competition to better coordinate the plans and projects of households and enterprises?
A) capitalism. B) socialism. C) fascism. D) totalitarianism E) all of the above.