The equilibrium level of income and output is that level of income where the desired spending by all sectors of the economy equals the value of output produced and the income received from production

In the 1960 nations could be divided into three distinct groups. Discuss these three groups and offer examples of countries that fit into each of these categories

What will be an ideal response?

An adverse supply shock would directly ________ labor productivity by changing the amount of output that can be produced with any given amount of capital and labor

It would also indirectly ________ average labor productivity through changes in the level of employment. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease