If, for a particular short-run production, we observe that marginal product is decreasing we can conclude that average product is decreasing as well
Indicate whether the statement is true or false
FALSE
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The demand for a necessity whose cost is a small portion of one's total income is
A. perfectly inelastic. B. relatively inelastic. C. relatively elastic. D. unit-elastic.
A multiple regression model suffers from functional form misspecification when it does not properly account for the relationship between the dependent and the observed explanatoryvariables.
Answer the following statement true (T) or false (F)
Refer to the diagram. The move of the economy from c to e on short-run Phillips Curve PC 2 would be explained by an:
A. increase in aggregate demand in the economy.
B. increase in aggregate supply in the economy.
C. actual rate of inflation that is less than the expected rate.
D. actual rate of inflation that exceeds the expected rate.
If there is an excess supply of money in the economy,
a. there is also an excess demand for money b. there is also an excess demand for bonds c. there is also an excess supply of bonds d. the interest rate will rise e. the Fed must intervene to restore equilibrium