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Suppose That an Economy's Labor Productivity Fell by 3 Percent

Question 57

Multiple Choice

Suppose that an economy's labor productivity fell by 3 percent and its total worker-hours remained constant between year 1 and year 2. We could conclude that this economy's


A) real GDP declined.
B) capital stock increased.
C) production possibilities curve shifted outward.
D) actual production moved from one point to another on a fixed production possibilities curve.

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