Prices rose strongly during the Vietnam War (1964–1974), and only the adroit monetary and fiscal policy management of the Carter administration (1976–1980) managed to get inflation under control

Suppose a country experiences an increase in output per worker. Such a development represents which of the following?

A) an increase in labor productivity B) an increase in population growth C) a reduction in the saving rate D) a decrease in economic growth

When the price of a good increases, all else equal, the higher price

a. reduces the consumer's set of buying opportunities. b. leads to a parallel shift of the budget constraint. c. will necessarily lead to an increase in the consumption of goods whose price did not change. d. generally discourages the consumption of inferior goods.