When the marginal product curve is above the average product curve, ________ as output increases
A) average product must decrease
B) average product must increase
C) marginal product must decrease
D) marginal product must increase
B
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In early 2010 Molly paid $200,000 for a house built in 2000 . She spent $30,000 on new materials to remodel the house. Although Molly lived in the house after she remodeled it, its rental value rose. Which of the following contributed to real GDP in 2010?
a. the price of the house, the cost of remodeling materials, the increase in rental value b. the price of the house and the cost of remodeling materials, but not the increase in rental value c. the costs of the remodeling materials and the increase in rent, but not the price of the house d. None of the above are correct.
The price elasticity of demand
a. is determined by the Federal Reserve Bank at a monthly meeting. b. only works well in competitive markets. c. intersects with the price elasticity of supply to determine the market equilibrium. d. is equal to the slope of the demand curve. e. varies from one point to another on a typical demand curve.
The Fed generally had high interest rates ________ as it fought inflation.
A. in the 1970s and early 1980s B. in the 1980s and 1990s C. in the 2000s D. in the late-1990s
When the price level rises there is a ________ the aggregate demand curve
A) movement down along B) rotation of C) rightward shift of D) leftward shift of E) movement up along