The theory of _____ states that the _____ adjusts to bring money supply and money demand into balance

A perfectly competitive firm in a competitive labor market will hire more labor whenever

A) its average revenue product of labor exceeds the wage rate. B) the wage rate exceeds its average revenue product of labor. C) its value of marginal product of labor exceeds the wage rate. D) the wage rate exceeds its value of marginal product of labor.

During a recession, total public assistance payments and unemployment compensation payments automatically increase while income taxes automatically decrease. Which of the following best describes the effect of these changes on aggregate demand? a. Aggregate demand will be less than it would be without these automatic stabilizers. b. Aggregate demand will be the same as it was before the

recession. c. Aggregate demand will be more than it would be without these automatic stabilizers. d. Aggregate demand will be greater than it was before the recession.