The Soviet Union's economy grew rapidly in terms of GDP per hour worked in the 1950s, but eventually this growth slowed. Why did this occur?
A) Capital per hour worked grew rapidly from 1950 to 1980, but technological change occurred very slowly.
B) Increasing implementation of new technologies eventually suffered diminishing marginal returns.
C) Capital per hour worked grew slowly, but technological change grew very rapidly.
D) The centrally planned economy invested too heavily in technological change.
Question 2
If cyclical unemployment is eliminated in the economy, then
A) the unemployment rate is above the natural rate of unemployment.
B) the economy is considered to be at full employment.
C) the unemployment rate is below the natural rate of unemployment.
D) the economy is at less than full employment.
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