The natural rate hypothesis suggests that improvements in technology that occur normally during the course of time will lead the economy to the natural rate of unemployment

Improvements in information technology over the past decade have enhanced labor productivity. What has been a likely result of this change?

A) Unemployment has increased. B) Entrepreneurs no longer have an incentive to invest in information technology. C) Capital productivity has declined. D) The rate of economic growth has increased.

The government redistributes income to the poor, primarily through

a. progressive taxes. b. transfer payments. c. government purchases. d. both a and b.