When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, a rise in labor ________________________which shifts the LRAS curve ____________ resulting in ______________________
A) shifts the production function up; rightward; economic growth
B) shifts the production function down; leftward; a shrinking economy
C) moves us up along a given production function; rightward; economic growth
D) moves us down along a given production function; leftward; a shrinking economy
C
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Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $4 and the wage rate is $70 per day, how many workers should Winnie employ to maximize his profit?
A) 1 B) 2 C) 3 D) 4
An easier monetary policy ________ the user cost of capital, which ________ net investment
A) raises, raises B) raises, lowers C) lowers, raises D) lowers, lowers
When it comes to basic commodities, the United States is a net exporter of oil and metals and a net importer of farm crops
a. True b. False
Saving is $40 billion and planned investment is $28 billion at the $175 billion level of output in a private closed economy. At this level:
A. Consumption will be $147 billion B. Actual investment will be $28 billion C. Unplanned investment will be positive $12 billion D. Unplanned investment will be negative $12 billion