When There Is a Temporary Increase in Total Factor Productivity

question 42

Multiple Choice

When there is a temporary increase in total factor productivity

• A)labour demand decreases and output demand increases.
• B)labour demand increases and output supply increases.
• C)labour demand decreases and output supply decreases.
• D)labour demand increases and output supply decreases.
• E)labour demand increases and output demand increases.

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Definitions:

Portfolio Management

The art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance.

Growth Stock Fund

A mutual fund that invests primarily in the stocks of companies believed to have above-average potential for growth in revenue and earnings.

Zero-Coupon Bonds

Bonds that do not pay periodic interest payments and are instead issued at a substantial discount to their face value, with the face value being paid at maturity.

Price Volatility

The degree of variation in the price of a financial instrument over a certain period, indicating the risk or stability of the asset.