Productivity Is ________

question 74

Multiple Choice

Productivity is ________.

• A)determined by central bank policy
• B)the combined effect of monetary and fiscal policy
• C)the residual component of the production function
• D)driven by changes in the rate of growth of output

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Definitions:

Crowding Out

A situation in economics where increased government spending reduces private sector investment or spending due to higher interest rates.

Opportunity Cost

The financial impact of bypassing the next most favorable choice in a decision.

Transfer Payments

These are payments made by the government to individuals or other entities without the government receiving any goods or services in return, such as welfare checks.

Government Budget Deficit

A situation where the government's expenditures exceed its revenues over a specified period of time, leading to borrowing or debt accumulation.