Refer to the information provided in Table 31.1 below to answer the question(s) that follow.Table 31.1PeriodQuantity of Labor (L)Quantity of Capital (K)Total Output (Y)1  50  50  2002  60  50  2203  70  50  2354  80  50  245Refer to Table 31.1. During Period 4, labor productivity is equal to

If price is above average total costs, the firm

A) is earning positive profits. B) is earning negative profits. C) is making a normal rate of return on its capital investment. D) may be earning a positive or negative profit depending upon costs.

If the economy is experiencing inflation, then the most appropriate government policy would be to:

A. shift the aggregate demand curve by using a tax increase coupled with spending cuts. B. shift the aggregate demand curve by using a tax increase coupled with more spending. C. shift the aggregate demand curve by using a tax cut coupled with spending cuts. D. shift the aggregate supply curve by using a tax cut coupled with more spending.