If demand increases, the increase in price will be smaller if demand and supply are highly inelastic.

Which of the following will be true if employment grows faster than the population as a whole? a. Output per capita will increase faster than productivity per worker

b. The standard of living will increase. c. Output per capita and productivity per worker will grow at an equal pace. d. Output per worker and productivity per worker will remain unaffected. e. Output per capita will increase at a diminishing rate.

Explain why the actual deficit is a poor measure of fiscal policy.

What will be an ideal response?