To determine the equilibrium price level and equilibrium level of real GDP, the aggregate demand and aggregate supply must
A) be considered as a multiplier. B) be disregarded.
C) be considered separately. D) intersect.
D
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If a firm hires 312 workers it will produce 4,522 units of output. If it hires 313 workers it will produce 4,786 units of output. The marginal physical product of labor equals
A) 4,786. B) 313. C) 264. D) 1.
If the price of a hamburgers increases, the substitution effect works to
a. decrease the quantity of hamburgers supplied b. increase the number of hamburger buns demanded c. decrease the quantity of hamburgers demanded d. increase the number of hamburger buns supplied e. increase the quantity of hamburgers demanded
As new firms enter a monopolistic competitive industry, it can be expected that:
A. market price will increase. B. the output of existing firms will increase. C. profits of existing firms will increase. D. profits of existing firms will decrease.
Total output may continue to rise even though marginal physical product is negative.
Answer the following statement true (T) or false (F)