Is it possible for an input to have a negative marginal product?
What will be an ideal response?
Yes, sometimes if a variable input is continued to be acquired even after the stage of diminishing returns, it can actually lead to a fall in total output. Hence, it is possible for an input to have a negative marginal product.
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On the graphs above, show how the central bank implements a decrease in the inflation target. In words, explain why the change in the real interest rate is temporary
What will be an ideal response?
If the reserve requirement was 5% and a bank customer makes a deposit of $1,000, the initial result would be:
a. a $950 increase in required reserves and a $50 increase in excess reserves. b. a $20,000 increase in required reserves and a $950 increase in excess reserves. c. a $50 increase in required reserves and a $20,000 increase in excess reserves. d. none of the above
Milton Friedman argued that the economy is not in long-run equilibrium if the expected inflation rate __________ the actual inflation rate
A) is less than B) is greater than C) equals D) a and b
A(n) ______ in supply and a(n) ______ in demand will result in a decrease in the equilibrium price.
a. lack of change; increase b. decrease; lack of change c. decrease; increase d. increase; decrease