Which of the following is most likely to have an impact on the growth of productivity?
A) a decrease in the price level
B) a decrease in real money balances
C) an increase in the labor supply
D) improvements in worker training
Productivity growth occurs when
A) there are more inputs.
B) firms can produce more output per unit of input.
C) more output is produced.
D) employees work extra hours.
Which of the following is NOT an example of a supply shock?
A) a drought in the Midwest
B) a decline in natural gas prices following discovery of new fields
C) the introduction of a new line of computer-controlled machine tools in manufacturing
D) a substantial increase in federal government spending on Medicare
Make use of the misperceptions theory to explain why the short-run aggregate supply curve is upward sloping.