Any change that reduces desired saving relative to desired investment (for a given level of output) causes the real interest rate to ________ and shifts the IS curve ________.
A. decrease; up and to the right
B. increase; down and to the left
C. increase; up and to the right
D. decrease; down and to the left
Answer: C
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If as output increases average product increases, then ________
A) average total cost decreases B) average fixed cost decreases C) marginal cost decreases D) average variable cost decreases
After 2 years of operation, the workers in XYZ Co become more adept because of their repeating work. As a result, the average cost of production is lowered due to
A) economies of scale. B) increasing returns to scale. C) increasing marginal returns. D) learning by doing.
Contrast the Keynesian and Monetarist views on the effectiveness of fiscal policy
Marginal revenue at the profit-maximizing/loss-minimizing amount is
A. $5.
B. $6.
C. $7.
D. $8.