Higher Rates of Productivity Growth Are Most Closely Associated with Higher

question 124

Multiple Choice

Higher rates of productivity growth are most closely associated with higher rates of

• A)consumer spending.
• B)investment spending.
• C)government spending.
• D)import spending.

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Definitions:

Supply

The complete quantity of a product or service that can be bought at a particular price point.

Price Floor

A legally established minimum price for a good, or service. Normally set at a price above the equilibrium price.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a high level of competition.

Persistent Shortages

An economic condition where the demand for a good or service consistently exceeds its supply, often due to factors like price controls, causing prolonged scarcity.