In the short run, if a firm's total product is increasing:
a. its marginal product must be increasing
b. its marginal product must be positive.
c. its marginal product could be increasing or decreasing.
d. both b. and c. are true.
d
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Use the following diagram to answer the next question.
Consider the data points shown in the diagram, the observations range from the oldest on the right to the most recent observations on the left. Based on these observations we can say ________.
A. the evidence shows a positive relationship between unemployment and inflation B. the evidence shows a negative relationship between unemployment and inflation C. the evidence shows there is no relationship between unemployment and inflation D. there is not enough evidence to determine the relationship between unemployment and inflation
In the basic Keynesian model, the major determinant of consumption expenditures is:
a. the interest rate. b. inflation. c. investment. d. disposable income.
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
The price level in the United States is more flexible downward than upward.
Answer the following statement true (T) or false (F)