Both marginal revenue and marginal revenue product refer to the gains to the firm from employing one additional worker
a. True
b. False
B
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Business cycles will occur if either of the two theories below characterizes the behavior of the economy:
A) the classical or the Keynesian theories of aggregate demand. B) the classical or the real balance theory. C) deflation impotence or rigid nominal wages. D) A and C.
Which of the following examples, ceteris paribus, will cause a rightward shift in the aggregate demand curve for the United States?
a. The nation’s general price level decreases. b. American consumers lose confidence in the economy. c. American consumers take on higher levels of debt. d. The nation’s population increases.
Refer to the information provided in Figure 6.9 below to answer the question(s) that follow.
Figure 6.9Refer to Figure 6.9. The marginal utility of the fourth video game rental is
A. 0. B. 4. C. 8. D. 22.
Since classical economists believe that both V and Q are constants, the equation of exchange becomes a theory in which
a. the quantity of money explains prices b. the quantity of money explains velocity c. the quantity of money explains real GDP d. changes in M cause changes in V e. prices are never flexible