Labor-augmenting technological change refers to improvements in efficiency that
A) occur without increasing the productivity of labor or the efficiency of capital goods.
B) increase the productivity of labor and the efficiency of capital goods.
C) increase the efficiency of capital goods without having to increase the productivity of labor.
D) increase the productivity of labor but that do not directly make capital goods more efficient.
D
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When the economy responds to a supply shock, there is ________ in the short run and ________ in the long run between inflation and unemployment
A) an inverse relationship; no trade-off B) no trade-off; an inverse relationship C) an inverse relationship; an inverse relationship D) no trade-off; no trade-off
According to purchasing-power parity, if over the course of a year the price level in the U.S. rises more than in Japan, then which of the following falls?
a. the U.S. real exchange rate, but not the U.S. nominal exchange rate b. the U.S. nominal exchange rate, but not the U.S. real exchange rate c. the U.S. nominal exchange rate and the U.S. real exchange rate d. neither the real exchange rate nor the nominal exchange rate