When the marginal product of labor is below the average product of labor, the average product must increase when employment increases
Indicate whether the statement is true or false
FALSE
Economics
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What will be an ideal response?
Economics
Suppose there is an increase in the money supply, but that people's demand for money balances increases by a greater amount at the same time. The net effect would be
A. an increase in aggregate demand due to the increase in the money supply, but a decrease in aggregate supply due to the increase in the demand for money. B. no change in aggregate demand or aggregate supply. C. a lower price level in the long run. D. lower interest rates, greater real GDP, and a higher price level as aggregate demand increases because of the indirect effect of the increase in the money supply.
Economics