An increase in total factor productivity: a.) can lead to an inflationary gap. b.) causes an increase in the sustainable growth rate. c.) is reflected in an increase in output for a given level of productivity.

An increase in total factor productivity: a.) can lead to an inflationary gap. b.) causes an increase in the sustainable growth rate. c.) is reflected in an increase in output for a given level of productivity.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter1: Introducing The Economic Way Of Thinking

Section: Chapter Questions

Problem 3SQ

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Concept explainers

Policy Instruments for Environmental protection

Policy Instruments for Environmental Protection link policy development and decision making to policy implementation to protect the environment and promote sustainable development. Economic growth brings great risk to the environment and often puts increased pressure on environmental resources. But it is the responsibility of the policymakers to ensure that the risk caused to the environment through developmental projects is kept in check. Environmental protection is central to sustainable development. They can be both beneficial and equitable. Environment protection policies can be used to deter environmentally damaging activities. They also improve social equity and raise revenue. 

Question

An increase in total factor productivity:
a.) can lead to an inflationary gap.
b.) causes an increase in the sustainable
growth rate.
c.) is reflected in an increase in output for
a given level of productivity.

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