Suppose the economy is producing at the natural rate of output
Assuming a fixed natural rate of output and everything else held constant, the development of a new, more productive technology will cause ________ in the unemployment rate in the short run and ________ in inflation in the short run. A) an increase; an increase
B) a decrease; a decrease
C) a decrease; an increase
D) no change; no change
B
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Dr. Goldfinger decides to invest in companies which he believes can "improve the productivity and efficiency" of health care services. How can Dr. Goldfinger strive to achieve this productive efficiency?
A) by investing in companies that fairly distribute their products and services B) by investing in companies that produce goods and services based on consumer preferences C) by investing in companies that produce up to the point where the marginal benefit of the last unit produced is equal to the marginal cost of producing it D) by investing in companies that produce goods and services at the lowest possible cost
Which of the following is not one of the four major sectors of the economy to which GDP is allocated?
a. consumer b. investment c. agriculture d. government