Increases in productivity due to changes in technological capacity could be best represented by:
a. Outward shift in the demand curve
b. Outward shift in the supply curvec Outward shift in both the demand and supply curves
d. Inward shift in the supply curve
b. Outward shift in the supply curve
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Which of the following correctly identifies a difference between taste-based discrimination and statistical discrimination?
A) Taste-based discrimination is observed in the service sector, whereas statistical discrimination is observed in the manufacturing sector. B) Taste-based discrimination is observed in the manufacturing sector, whereas statistical discrimination is observed in the service sector. C) Employers engaging in taste-based discrimination are willing to forego profits, whereas employers engaging in statistical discrimination are trying to enhance profits. D) Employers engaging in statistical discrimination are willing to forego profit, whereas employers engaging in taste-based discrimination are trying to enhance profits.
Which of these changes is observed in an economy when a recessionary gap is closed in the long run?
a. An increase in the inflation rate and a decrease in the unemployment rate b. An increase in the level of output and a decrease in the price level c. An increase in both the rate of output and the price level d. A decrease in both the rate of output and the price level e. A decrease in the inflation rate and an increase in the unemployment rate