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(13) A decrease in total factor productivity shifts the production function a)upward, but does not change its slope. b)downward, but does not change its slope.
(13) A decrease in total factor productivity shifts the production function
a)upward, but does not change its slope.
b)downward, but does not change its slope.
c)downward, and also changes its slope.
d)None of the above
(14) Government spending in the one-period model acts to
a)shift out the production possibilities frontier.
b)make consumers less productive.
c)decrease hours of work.
d)reduce consumption.
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