Some economists argue that the productivity slowdown of the mid-1970s to the mid-1990s was due to changes in oil prices that
A) increased production costs, causing firms to reorganize production to conserve energy, which reduced output per worker.
B) decreased production costs, causing firms to reorganize production to conserve energy, which reduced output per worker.
C) increased production costs, causing firms to reorganize production to conserve energy, which increased output per worker.
D) decreased production costs, causing firms to increase production, which reduced output per worker.
Answer: A) increased production costs, causing firms to reorganize production to conserve energy, which reduced output per worker.
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A new law passed in Bonland requires all bikers to wear helmets while riding. It also states that those who do not wear helmets while riding will be punished. This law is likely to lead to a(n) ________
A) decrease in government expenditure B) increase in government expenditure C) decrease in tax rates D) increase in the overall price level
Refer to Figure 27-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely pursue
A) expansionary automatic stabilizers. B) contractionary monetary policy. C) contractionary fiscal policy. D) expansionary monetary policy. E) expansionary fiscal policy.