Which of the following is the best measure of inflation in an economy?

If productivity is growing at some sustained rate g, then output and capital per worker ________

A) are growing at the same rate g, in a stable steady state B) are growing faster than g, because improving technology encourages a higher rate of saving and investment C) are growing slower than g, because some of the new capital is merely replacing obsolete capital D) are growing faster than g, because productivity does not suffer from diminishing marginal product

The argument that suggests that regulators balance the interests of firms, consumers, and legislators is called

A) the capture hypothesis. B) the creative response theory. C) the share-the-gains, share-the-pains theory. D) the theory of optimal regulation.