An increase in the demand for rubles causes the ruble to appreciate

The U.S. economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of many Western European countries. Which of the following explains this?

A) The United States has a higher rate of job mobility than do many Western European countries. B) U.S. unions impose stricter work rules as compared to unions in Western European countries. C) U.S. government regulations impose stricter work rules as compared to government regulations in Western Europe. D) U.S. workers can obtain unemployment insurance for a longer period of time as compared to workers in most Western European countries.

If output exceeds its full-employment level, the wage rate will eventually fall, causing a drop in the price level and a drop in real GDP until full employment is restored

a. True b. False