When do diminishing marginal returns occur?
(A) When some workers increase output but others decrease it.
(B) When extra workers will have to wait their turn to be productive.
(C) When the marginal product of labor increases as the number of workers increases.
(D) When additional workers increase total output at a decreasing rate.
Ans: (D) When additional workers increase total output at a decreasing rate.
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Refer to Table 26-4. Suppose the following table illustrates the values of real and potential GDP and the price level if the Fed does not vote to change their current policy to be more contractionary or expansionary
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