A small change in the rate of productivity growth will have:
a. a small impact on output in both the short run and the long run
b. a large impact on output in both the short run and the long run.
c. a small impact on output in the short run but a large impact in the long run.
d. a large impact on output in the short run but a small impact in the long run.
e. no effect on output at all.
c
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Refer to Figure 27-1. Suppose the economy is in short-run equilibrium below potential GDP and no fiscal or monetary policy is pursued. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) A to E. B) C to B. C) B to C. D) B to A. E) A to B.
When Americans decrease their demand for Japanese goods
A) the supply of dollars will fall, and the demand for yen will fall. B) the supply of dollars will rise, and the demand for yen will rise. C) the demand for dollars will rise, and the demand for yen will rise. D) the demand for dollars will fall, and the demand for yen will rise.