An economy experiences a recessionary ga
A) falls, shifting the aggregate supply curve rightward.
B) rises, shifting the aggregate supply curve leftward.
C) rises, shifting the aggregate demand curve rightward.
D) falls, shifting the aggregate demand curve leftward.
E) falls, increasing potential GDP.
A
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Which of the following stands true for factors that affect changes in productivity across countries and over time?
a. It is more difficult to measure changes in the quality of goods than changes in the quality of services. b. As energy prices go up, energy-efficient capital goods become obsolete. c. It is believed that productivity grows more slowly in manufacturing industries than in services, because of the less labor-intensive nature of manufacturing industries. d. The key to efficient production is the allocation of resources to their best use. e. The greater the productivity, the more efficient the allocation of resources, and the less developed a country's financial market would be.
Given the annual rate of inflation, the "Rule of 70" allows one to:
A. calculate the accompanying rate of unemployment. B. determine when the value of a real asset will approach zero. C. determine whether the inflation is demand-pull or cost-push. D. calculate the number of years required for the price level to double.