Do the Recent High Technological Advances and Productivity Rates Mean

question 121

Multiple Choice

Do the recent high technological advances and productivity rates mean that the business cycle is dead?

• A)Yes, the faster rate of productivity growth will eliminate recession.
• B)Yes, the changes in technology have a compound, positive effect on the economy.
• C)No, the trend line for economic growth is just steeper, but there can still be economic downturns.
• D)No, the fact there are many start-up firms means that there will be more bankruptcies that will hurt the economy.

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Definitions:

Total Revenue

The total income generated from selling goods or services, calculated by multiplying the price by the quantity sold.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, demonstrating the goods' sensitivity to price changes.

Quantity

The amount or number of a material or immaterial good considered as a unit or total.

Perfectly Inelastic

Describing demand that is entirely unresponsive to price changes, represented by a vertical demand curve.