If the level of technology rises, GDP per hour of labor
A) decreases for a given level of capital per hour of labor.
B) increases for any level of capital per hour of labor.
C) decreases because the level of capital per hour of labor decreases.
D) increases because the level of capital per hour of labor increases.
E) does not change because GDP increases only when capital or labor increases.
B
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________ is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact, it is a change in variable Y that caused a change in variable X
A) Reverse causality B) The positive-to-negative relationship C) Nonlinear slope D) The omitted variable
Positive supply shocks can have a tendency to ________ costs of production and ________ the inflation rate
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease