The above figures show the market for HD televisions. If the technology used to produce these televisions advances so that productivity increases, which figure shows the effect of this change?
A) Figure A
B) Figure B
C) Figure C
D) Figure D
E) None of the figures represent this change.
Question 2
Starting from a situation of full employment, an increase in aggregate demand creates ________ and ________ the price level.
A) an inflationary gap; raises
B) a recessionary gap; lowers
C) a recessionary gap; raises
D) a recessionary gap; does not change
E) an inflationary gap; lowers
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