Firms should hire additional units of a resource as long as the
a. marginal product of the resource exceeds the price of the resource multiplied by the quantity of output produced.
b. marginal product of the resource is less than the price of the resource.
c. price of the output produced is positive.
d. marginal revenue product of the resource exceeds the cost of employing an additional unit of the resource.
D
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If the government finances an increase in government purchases with an increase in taxes, which of the following would you not expect to see?
A) an increase in the exchange rate B) a decrease in net exports C) a decrease in the interest rate D) an increase in aggregate demand
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and reserve-related (central bank) transactions become more negative (or less positive). b. The GDP Price Index and reserve-related (central bank) transactions remain the same. c. The GDP Price Index falls, and reserve-related (central bank) transactions remain the same. d. The GDP Price Index rises, and reserve-related (central bank) transactions become more positive (or less negative). e. The GDP Price Index rises, and reserve-related (central bank) transactions remain the same.
If you are really poor, often your only credit option may be ________________.
Fill in the blank(s) with the appropriate word(s).
If the long-run aggregate supply curve is vertical, fiscal policy will have no effect on output.
Answer the following statement true (T) or false (F)