A Slowdown in the United States' Rate of Increase in Productivity

question 1

Multiple Choice

A slowdown in the United States' rate of increase in productivity is of concern to policy makers because it

• A) reduces our dependency on imports.
• B) may contribute to a higher rate of inflation.
• C) shifts the Phillips curve downward to the left.
• D) forces interest rates too low.
• E) makes foreign producers less competitive.

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Definitions:

Efficient Results

Outcomes in which resources are allocated in a way that maximizes the net benefits to society.

Equitable Outcome

An equitable outcome is a fair and impartial distribution of resources or opportunities among all members of a community or society, taking into account the needs and contributions of each individual.

Spending

The act of expending funds to purchase products or services.

Recession

A phase of short-term economic downturn characterized by a decrease in commerce and manufacturing, typically marked by two consecutive quarters of declining gross domestic product (GDP).