High inflation A) makes money function less well as a store of ...

[jwb375]

High inflation
 
  A) makes money function less well as a store of value.
  B) lowers the price level.
  C) leads to a more correct allocation of resources.
  D) decreases uncertainty.
  E) makes it easier to use money as a standard of account.

Question 2

What does a productivity curve reflect? What leads to movements along a productivity curve and what leads to shifts in a productivity curve?
 
  What will be an ideal response?

[cascooper22]

Answer to Question 1

A

Answer to Question 2

The productivity curve shows the relationship between the amount of capital per hour of labor and real GDP per hour of labor, that is, between capital per hour labor and labor productivity. The curve is upward sloping, but, due to diminishing returns, the slope becomes less steep as capital per hour of labor increases. If the amount of capital per hour of labor changes, there is a movement along the productivity curve. If the amount of human capital increases and/or technology advance occurs, the productivity curve shifts upward.

[jwb375]

Gracias!

[lindahyatt42]

TYSM