Typically, as a firm hires additional workers, the marginal product of labor
a. decreases, and the value of the marginal product of labor decreases.
b. stays constant, and the value of the marginal product of labor decreases.
c. decreases, and the value of the marginal product of labor stays constant.
d. decreases, and the value of the marginal product of labor increases.
a
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Which of the following changes would cause American net exports to decrease?
A. An increase in foreign income B. A decrease in American income C. A shift in demand by American consumers away from domestically produced goods D. A decrease in the real value of the dollar
Related to the Economic in Practice on page 710: Corruption often leads to more efficient firms producing the goods and services in a society.
Answer the following statement true (T) or false (F)
What are the two components of federal spending?
What will be an ideal response?
Refer to the above figure. If the relevant aggregate demand curve was AD2, the government could do all of the following to close the existing gap EXCEPT
A) increase government spending on roads. B) reduce marginal tax rates. C) reduce corporate taxes. D) reduce defense spending.