An increase in wages in the public sector is always accompanied by an increase in labor productivity.

The marginal propensity to consume (MPC) is equal to

A) 1 + MPS. B) 1 - MPS. C) MPS + 1. D) MPS - 1.

Which of the following statements best describes the U.S. economy since 1960?

a. Potential output has risen steadily, but actual output has fluctuated above and below full-employment output. b. Actual output has risen steadily, but potential output has fluctuated above and below actual output. c. Potential output and actual output have both not risen steadily. d. Potential output and actual output have both fluctuated above and below what the classical model predicts. e. Potential output has remained constant but actual output has risen.