As long as marginal product of labor exceeds the average product of labor, then average product of labor
A. will stay unchanged.
B. must rise.
C. will be at its maximum value.
D. must fall.
Answer: B
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The facts show that the political business cycle theory
A) does a good job of explaining monetary policy during presidential election years. B) is unable to explain monetary policy during presidential election years. C) doesn't generally support the political business cycle theory. D) explains monetary policy best during years in which the President is running for reelection.
Refer to the above figure. At a price of $10, excess quantity supplied equals
A) 0. B) 12. C) 15. D) infinity.
Firms
a. are where entrepreneurs combine resources b. are economic units formed by profit-seeking entrepreneurs c. are assumed to try to maximize profit d. reward entrepreneurs with profits, which are sales revenue minus the cost of production e. All of the answers are correct.
Refer to the graph shown. If expected inflation increases from 0 percent to 6 percent, the:
A. economy will move from point B to point C. B. short-run Phillips curve will shift from PC2 to PC1. C. short-run Phillips curve will shift from PC1 to PC2. D. economy will move from point C to point A.