In Analyzing Macroeconomic Data During the Past Year,you Have Discovered

question 56

Multiple Choice

In analyzing macroeconomic data during the past year,you have discovered that average labour productivity fell,but total output increased.What was most likely to have caused this?

• A)Government deficit was reduced.
• B)The capital/output ratio probably rose.
• C)There was an increase in labour input.
• D)Unemployment probably increased.

---

Definitions:

Over-optimism

The tendency to overestimate the likelihood of positive outcomes in the future.

Consumer

An individual or group that purchases goods or services for personal use.

Perceived Budget Line

A graphical representation of all possible combinations of goods that a consumer can purchase with a given budget, based on their perception of available resources.

Equilibrium

A state in which economic forces such as supply and demand are balanced and in the absence of external influences, the values of economic variables will not change.