Advances in technology and growth in human capital ________ because ________
A) shift the productivity curve downward; labor and capital become less productive
B) shift the productivity curve upward; labor and capital become less productive
C) shift the productivity curve upward; labor and capital become more productive
D) do not shift the productivity curve; there is a movement along the productivity curve
E) shift the productivity curve downward; labor and capital become more productive
C
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Suppose that wages and prices are quite flexible, so that the short-run aggregate supply curve is steep. In that case, ________
A) policies to stabilize inflation are probably needed more than policies to stabilize economic activity B) supply shocks will destabilize inflation, but have minimal impact on output C) demand shocks will destabilize output, but have minimal impact on inflation D) all of the above E) none of the above
Equilibrium in a market occurs when
A) demand and supply indicate a small surplus of a good. B) price is at its minimum. C) quantity supplied and quantity demanded are equal at the market clearing price. D) the market price leads to a decrease in quantity demanded.