Suppose an Economy Experiences an Increase in Productivity

question 37

Essay

Suppose an economy experiences an increase in productivity.Explain both the short-run and medium-run effects of this increase in productivity on output,employment,and the unemployment rate.

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Definitions:

Reason Abstractly

The capacity to contemplate concepts, principles, and entities that are not tangible or visible.

Information Processing

The way individuals encode, store, and retrieve information, drawing similarities between the mind's functioning and computer operations.

Scan

To look over or examine carefully and systematically, often to obtain specific information.

Environment

Totality of nonhereditary, or experiential, influences on development.