Other Things Equal, an Increase in Productivity Will

question 123

Multiple Choice

Other things equal, an increase in productivity will

• A) reduce aggregate supply and increase real output.
• B) reduce both the interest rate and the international value of the dollar.
• C) increase both aggregate supply and real output.
• D) increase net exports, increase investment, and reduce aggregate demand.

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Definitions:

Optimistic

A mindset or attitude that tends to expect the most favorable outcomes of situations or believes that good ultimately predominates over evil in the world.

Pessimistic

A tendency to anticipate unfavorable outcomes or emphasize the negative aspects of a situation.

Expected Time

An estimation of the duration it would likely take to complete a task, often used in project management for scheduling.

PERT Times

entails the estimated durations in the Program Evaluation and Review Technique, a method used in project management.