Diminishing marginal product describes the situation where ______.
a. the minimum change in output per hour has been reached
b. as a variable input increases, additions to output decline
c. average cost savings per unit of output per hour are zero
d. the marginal product curve crosses below zero
b. as a variable input increases, additions to output decline
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Where is the interest rate determined in the classical model?
a. In the goods market b. In the loanable funds market c. By the federal government d. By the Fed e. Where aggregate expenditure equals GDP.
The aggregate demand curve
a. would be little affected by a technological advancement b. shifts to the right when spending decreases c. shifts to the left when there is a decrease in taxes d. can shift independently of the aggregate supply curve e. shifts to the right when there is an expectation that future income will fall
Crest Toothpaste offers new whitening toothpaste one year, a new gel swirl design the next year, and an improved cleaning formula the year after. Crest Toothpaste does this because it is
A) a monopoly trying to decrease its costs. B) a perfectly competitive firm trying to increase its price. C) a monopolistically competitive firm trying to maintain its economic profit. D) driving its competitors out of business. E) a perfectly competitive firm trying to increase its costs so it can increase its price.
Figure 36-6
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In Figure 36-6, an expansive monetary policy in a closed economy results in an equilibrium at point E. In our open economy, allowing for the induced change in the currency exchange rate, the final equilibrium will be at a point like
A. B. B. F. C. J. D. H.