If the marginal product of labor exceeds that cost of hiring an additional worker, the firm should ________

A) fire some workers
B) raise the wage rate
C) add more workers
D) lower the wage rate


C

Economics

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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 

A. D; C B. B; C C. B; A D. D; B

Economics

A ________ strategy is when a player chooses a different strategy time after time

Fill in the blank(s) with correct word

Economics

Both France and the United Kingdom successfully used exchange-rate targeting to lower inflation in the late 1980s and early 1990s by tying the value of their currencies to the

A) U.S. dollar. B) German mark. C) Swiss franc. D) Euro.

Economics

Identify at least four important policy questions about the powers and limits of government economic policy that macroeconomics models are able to answer

What will be an ideal response?

Economics