1) In the labor market, increases in labor productivity ________ the real wage rate and ________ employment.
a) lowers; increases
b) raises; increases
c) lowers; decreases
d) raises; decreases
I think it's a, but want to make sure.
2) In the United States from 1986 to 2005, advances in technology and investment in capital
a) lead to movements along the U.S. production function but did not shift the production function
b) increased the supply of labor.
c) shifted the U.S. production function downward.
d) increased workers' productivity.
Not sure at all about this one.
3) Potential GDP
a) measures the actual production from year to year.
b) is cyclical.
c) measures the output that could be produced if the economy is at full employment.
d) Both answers A and C are correct
Pretty sure it's c, but wanted to make sure.
-Thanks for any help.
a) lowers; increases
b) raises; increases
c) lowers; decreases
d) raises; decreases
I think it's a, but want to make sure.
2) In the United States from 1986 to 2005, advances in technology and investment in capital
a) lead to movements along the U.S. production function but did not shift the production function
b) increased the supply of labor.
c) shifted the U.S. production function downward.
d) increased workers' productivity.
Not sure at all about this one.
3) Potential GDP
a) measures the actual production from year to year.
b) is cyclical.
c) measures the output that could be produced if the economy is at full employment.
d) Both answers A and C are correct
Pretty sure it's c, but wanted to make sure.
-Thanks for any help.