In the Long Run, Technological Progress

question 322

Multiple Choice

In the long run, technological progress

• A)and increases in the money supply both make the price level rise.
• B)and increases in the money supply both make the price level fall.
• C)makes the price level rise, while increases in the money supply make prices fall.
• D)makes the price level fall, while increases in the money supply make prices rise.

---

Definitions:

Mortgage Default Rate

The percentage of borrowers who fail to make required loan payments on their mortgage.

Foreclosure Rate

The percentage of home mortgages on which the lender has started the process of taking ownership of the property because the borrower has failed to make the monthly payments.

Economic Expansions

Periods when an economy grows and not just recovers from a decline, typically seen by increases in industrial production, employment, and sales.

Mortgage Default Rates

The percentage of borrowers failing to make their mortgage payments on time, leading to default.