An Increase in Worker Productivity Will

question 17

Multiple Choice

An increase in worker productivity will

• A)increase aggregate supply.
• B)increase aggregate demand.
• C)decrease aggregate supply.
• D)decrease aggregate demand.

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Definitions:

Par Value

The face value of a bond or the stock value stated in the corporate charter, representing the minimum standard value.

Zero-Coupon Bond

A debt security that does not pay interest but is traded at a deep discount, rendering a profit at maturity when the bond is redeemed for its full face value.

Yield To Maturity

The total return anticipated on a bond if it is held until the date it matures, accounting for interest payments and capital gains.

Forward Rate

The predetermined interest rate for a loan or investment that will start in the future, often derived from current yield curves.