Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as

New growth theory proposes that real GDP per person grows because of ________ and that growth ________

A) the pursuit of profit; can persist indefinitely B) productivity shocks; can persist indefinitely C) technological change; can only increase above the subsistence level temporarily D) productivity shocks; occurs randomly

Compared to France, the U.S. has a ______ union membership percentage of its labor force.

Fill in the blank(s) with the appropriate word(s).