Increases in productivity result in:
A)Higher inflation as output increases
B)Lower inflation as output decreases
C)Opportunities for policymakers to reduce their inflation target without inducing a recession
D)None of the answers provided is correct

Question

Quizplus · Accepted Answer

Increases in productivity can lead to higher output without increasing costs, allowing policymakers to lower inflation targets without causing a recession.

Increases in Productivity Result In