What concept implies that a firm's marginal revenue product curve for labor will slope downward in the short run?
a. diminishing marginal returns
b. the law of supply
c. the law of decreasing cost
d. the price equalization principle
A
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Steps in the transmission of monetary policy are
A) Congress increases the budget deficit, which increases the money supply, which increases aggregate supply. B) Congress increases the money supply, which lowers the interest rate, and leads to an increase in aggregate demand. C) the Federal Reserve lowers the federal funds rate, which lowers the real interest rate, and leads to an increase in aggregate demand. D) the Federal Reserve increases government expenditures on goods and services, leading to an increase in aggregate demand. E) Congress increases government expenditures on goods and services, leading to an increase in aggregate demand.
When economic profits are negative, accounting profits could be:
A. positive. B. negative. C. zero. D. All of these are possible.
A change in the price level in an economy will be depicted by a movement along the AE curve and not by a leftward or rightward movement of the curve
a. True b. False Indicate whether the statement is true or false
At any quantity, the price given by the supply curve shows the cost of the lowest-cost seller
a. True b. False Indicate whether the statement is true or false