Explain the productivity curve and how the components interact. ...

[vinney12]

Explain the productivity curve and how the components interact.
 
  What will be an ideal response?

Question 2

If the U.S. real exchange rate is 125, the U.S. price index is 140, and the Japanese price index is 165, what is the yen to dollar exchange rate?
 
  A) 106.06 B) 125.65 C) 147.32 D) 184.80

[nhea]

Answer to Question 1

The productivity curve is a relationship that shows how real GDP per hour of labor varies as the amount of capital per hour of labor changes with no change in technology. An increase in the amount of capital per hour of labor leads to a movement along a productivity curve. An increase in technology shifts the productivity curve upward.

Answer to Question 2

C