Which of the following represents the general rule of hiring for a firm?
A) Total physical product equals marginal factor cost.
B) Average revenue product equals the wage rate.
C) Marginal cost equals marginal revenue.
D) Marginal revenue product equals marginal factor cost.
Answer: D
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The table gives data on the production and prices in a small economy. Use 2012 as the base period. Using the chained-price method, what is the growth rate of real GDP from 2012 to 2013?
What will be an ideal response?
The number of unemployed divided by the labor force equals
A) the inflation rate. B) the labor force participation rate. C) the unemployment rate. D) the misery index.
Like the monetarists, new classical economists favor
a. money growth aimed at achieving a nominal GDP target. b. discretionary policy action. c. a money growth rate that stabilizes output. d. a money growth rule that guides monetary policy.
As the marginal propensity to consume (MPC) increases, the spending multiplier:
a. increases. b. decreases. c. remains constant. d. becomes indefinable.