Increases in productivity result in:
A. lower inflation as output decreases.
B. opportunities for policymakers to reduce their inflation target without inducing a recession.
C. higher inflation as output increases.
D. none of the answers provided is correct.
Answer: B
You might also like to view...
Imagine a 2,000-acre park with picnic benches, trees, and a pond. Suppose it is publicly owned, and people are invited to enjoy its beauty. Of course, when the weather is nice it is difficult to find parking, and the trash cans overflow with food wrappers on summer afternoons. Otherwise, it is a great place. The park is not a pure public good because
a. when trash cans overflow, a negative externality becomes a positive externality b. it is not fenced to control access c. weather is nice only in the summer, limiting optimal use d. if too many people use it, one person's use can prevent others from using it as well e. you have to drive to get there and the automobile is a private good
If Sean sells Susan a DVD player for $30,
A) both Sean and Susan will gain from this transaction. B) the well-being of both parties will be unchanged. C) Sean will gain from the transaction, but Susan will lose. D) Susan will gain from the transaction, but Sean will lose.