An increase in the stock of human capital would
a. shift the production function upward, lowering productivity and raising living standards
b. shift the production function upward, raising productivity and living standards
c. cause the economy to move along a fixed production function, increasing both productivity and living standards
d. cause the economy to move along a fixed production function, reducing both productivity and living standards
e. shift the production function downward, reducing both productivity and living standards
B
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The stickiness of wages and prices will cause
A) changes in aggregate demand to have short-run effects on real GDP. B) changes in aggregate demand to have no short-run effects on real GDP. C) changes in aggregate demand to have long-run effects on real GDP. D) changes in aggregate demand to have both short-run and long-run effects on real GDP.
On necessities, more of the incidence of tax is
A. borne by the producer. B. borne by the consumer. C. shared equally between the producer and the consumer. D. None of these are correct.