Business-cycle macroeconomics involves increases in Real GDP that result from a rightward-shifting LRAS curve
Indicate whether the statement is true or false
False
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An increase in the price of a firm's output
A) raises the value of marginal product of each unit of labor. B) shifts the firm's demand for labor curve rightward. C) results in the firm increasing the amount of output it produces. D) All of the above answers are correct.
Suppose that a firm's capital equipment is expected to last indefinitely, that operating expenses on the equipment are negligible, and that the price of the firm's product is expected to remain constant in the future. Under these circumstances, the firm's marginal rate of return on investment is equal to capital's
a. marginal resource cost as a percentage of its marginal revenue product b. marginal product as a percentage of its marginal revenue product c. marginal revenue product as a percentage of its marginal product d. marginal resource cost as a percentage of the price of capital e. marginal revenue product as a percentage of its marginal resource cost
According to the rational expectations school, expansionary fiscal policy is harmful to the economy, but expansionary monetary policy can be effective when the Fed tries specific targeting
Indicate whether the statement is true or false
If a firm in a perfectly competitive market faces a market price of $2, and it decides to increase its production from 2,000 units to 4,000 units, the firm's marginal revenue:
A. will increase from $4,000 to $8,000. B. will stay the same. C. will decrease from $8,000 to $4,000. D. None of these is true.