The benefit from an additional unit of a good or service that people other than the consumer of that good or service receives is the

Which of the following is not an assumption made by the dynamic model of aggregate demand and aggregate supply?

A) The short-run aggregate supply curve shifts to the right except during periods when workers and firms expect higher wages. B) The aggregate demand curve shifts to the right during most periods. C) Aggregate demand and potential real GDP decrease continuously. D) Potential real GDP increases continuously.

The slope of the per-worker production function diminishes as the amount of capital per-worker increases. This is a reflection of the law of _____

a. increasing marginal returns b. diminishing marginal returns c. constant marginal returns d. first diminishing then increasing marginal returns e. demand